Nigeria’s state oil firm, NNPC, declared an oil and gas production emergency on Tuesday. Mele Kyari, the Group CEO, made this announcement during his keynote speech at the 23rd Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja.
Kyari stated, “We’ve decided to end discussions and take action against the issues impacting our oil production. This is a serious battle, and we have the resources and plans in place. With our partners, we aim to improve the current situation.”
After a thorough assessment, Kyari noted that Nigeria could achieve a daily crude oil production of two million barrels without additional rigs, but the main obstacle is the lack of prompt action by stakeholders. The declared “war” aims to address all barriers to efficient operations, including procurement delays common in the industry.
For medium to long-term strategies, NNPC Ltd. plans to replace aging crude oil pipelines built over four decades ago and implement a rig sharing initiative with partners, ensuring rigs remain in the country for four to five years. Kyari urged industry participants to collaborate to cut production costs and boost production.
Kyari also emphasized the company’s commitment to investing in critical gas infrastructure like the OB3 and Ajaokuta-Kaduna-Kano gas pipelines to enhance domestic gas production for power generation, industrial growth, and economic advancement. Regarding Compressed Natural Gas (CNG), he mentioned NNPC Ltd.’s alignment with the Presidential CNG initiative and the establishment of several CNG stations with partners like NIPCO Gas, with plans to inaugurate 12 stations in Lagos and Abuja.
During the NOG Energy Week’s opening ceremony, goodwill messages and keynotes were delivered by prominent figures, including OPEC Secretary General Haitham Al Ghais, GECF Secretary General Engr. Mohamed Hamel, Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), Rt. Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), Ms. Olu Verheijen, Special Adviser to the President on Energy, and Mr. Abdulrazaq Isa, Chairman of IPPG.
NNPC Ltd. is the main sponsor of the 2024 NOG Energy Week Conference & Exhibition, which focuses on highlighting opportunities, stimulating investments, and addressing energy needs.
