In an effort to increase Nigeria’s crude oil production and grow its reserves, the Nigerian National Petroleum Company Limited has declared a state of emergency on production in Nigeria’s oil and gas industry.
“We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners. And we will work together to improve the situation,” the GCEO declared.
In a statement by the Chief Corporate Communications Officer of NNPC Ltd., Mr. Olufemi Soneye, on Tuesday, Kyari said a detailed analysis of assets revealed that Nigeria can conveniently produce two million barrels of crude oil per day without deploying new rigs, but the major impediment to achieving that remains the inability of players to act in a timely manner.
He said the “war” will help NNPC Ltd. and its partners speedily clear all identified obstacles to effective and efficient production, such as delays in procurement processes, which have become a challenge in the industry.
On medium- to long-term measures aimed at boosting and sustaining production, Kyari said NNPC Ltd. would replace all the old crude oil pipelines built over four decades ago and also introduce a rig-sharing program with its partners to ensure that production rigs stay in the country for between four and five years, which is the standard practice in most climes.
He called on all industry players to work together to reduce production costs and boost production to target levels.
He expressed the company’s commitment to investing in critical midstream gas infrastructure, such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines, to boost domestic gas production and supply for power generation, industrial development, and the country’s economic prosperity.
On compressed natural gas (CNG), Kyari said NNPC Ltd. has since keyed into the Presidential CNG drive, adding that in conjunction with partners such as NIPCO Gas, NNPC Ltd. has built a number of CNG stations, 12 of which will be commissioned on Thursday in Lagos and Abuja.
The NOG Energy Week opening ceremony also saw goodwill messages and keynotes presented by the Secretary General of the Organisation of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais; the Secretary General of the Gas Exporting Countries Forum (GECF), Engr. Mohamed Hamel; the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; and the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.
Others include the Special Adviser to the President on Energy, Ms. Olu Verheijen, as well as the Chairman, the Independent Petroleum Producers Group (IPPG), Mr. Abdulrazaq Isa.
NNPC Ltd. is the principal sponsor of the 2024 NOG Energy Week Conference & Exhibition, which has as its theme, “Showcasing opportunities, driving investment, and meeting energy demand.”
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