NNPCL Declares State of Emergency on Crude Oil Production

 The Nigerian National Petroleum Company Limited (NNPCL) has declared a state of emergency on crude oil production. This announcement was made by the Group Chief Executive Officer of NNPCL, Mele Kyari, during his keynote address at the opening ceremony of the 23rd Nigeria Oil and Gas Conference and Exhibition (NOG Energy Week) in Abuja.

Kyari emphasized the urgency of addressing the challenges facing crude oil production, stating, "We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. War means war. 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."

He revealed that a detailed asset analysis indicated that Nigeria has the capacity to produce two million barrels of crude oil per day without the need for new rigs. The primary obstacle, he noted, is the lack of prompt action by industry players.

Kyari outlined that the emergency measures would involve the immediate removal of identified barriers to efficient production, including delays in procurement processes. These measures aim to address the long-standing challenges in the industry.

In discussing medium- to long-term strategies, Kyari announced plans to replace the aging crude oil pipelines, which were built over four decades ago. Additionally, NNPCL will implement a rig-sharing program with its partners to ensure that production rigs remain in the country for four to five years, aligning with standard practices in most countries.

He called on all industry players to collaborate in reducing production costs and enhancing output to meet target levels. Kyari also reiterated NNPCL's commitment to investing in critical midstream gas infrastructure, such as the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines, to boost domestic gas production and supply for power generation, industrial development, and economic prosperity.

Furthermore, Kyari highlighted NNPCL's alignment with the presidential compressed natural gas (CNG) initiative. In collaboration with partners like NIPCO Gas, NNPCL has constructed several CNG stations to support this drive.