The Nigerian National Petroleum Company (NNPC) Limited has officially declared an emergency aimed at tackling the ongoing challenges in the country’s oil and gas production sector.
Mele Kyari, the Group Chief Executive Officer of NNPC, made this announcement during his keynote address at the opening of the 23rd Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week), held in Abuja on Tuesday. According to reports by Channels News, Kyari emphasized the urgent need for decisive action, describing the situation as a “war” against the factors hindering Nigeria’s crude oil output.
“We have decided to put an end to debates and take action. We are waging a war on the hurdles affecting crude oil production. We have the tools, we know what to target, and we are committed to solving these issues alongside our partners,” Kyari stated emphatically.
Key Production Challenges and Solutions
Kyari revealed that a comprehensive assessment of oil assets indicates Nigeria has the capacity to produce up to two million barrels of crude oil daily without requiring new rigs. However, delays and inefficiencies in addressing operational bottlenecks remain the primary barriers to achieving this goal.
To address short-term challenges, Kyari stated that NNPC, in collaboration with industry stakeholders, will expedite the resolution of issues such as lengthy procurement processes that have slowed progress. He added that on the medium to long-term front, NNPC plans to replace outdated pipelines—some over four decades old—and implement a rig-sharing initiative with industry partners. This program aims to ensure the sustained presence of production rigs in Nigeria for a standard operational period of four to five years.
Collaborative Efforts and Strategic Investments
The NNPC boss urged all stakeholders within the oil and gas sector to work collectively towards reducing production costs while increasing output. Additionally, he highlighted the company’s commitment to substantial investments in midstream gas infrastructure, citing critical projects like the Obiafu-Obrikom-Oben (OB3) gas pipeline and the Ajaokuta-Kaduna-Kano gas pipeline. These initiatives are expected to bolster domestic gas production, enhance power supply, support industrial growth, and contribute to Nigeria’s overall economic development.
On Compressed Natural Gas (CNG), Kyari affirmed NNPC’s alignment with the Presidential CNG Initiative. He noted that the company, in partnership with NIPCO Gas, has constructed several CNG stations, 12 of which are set to be inaugurated on Thursday in Lagos and Abuja. These stations aim to provide an affordable and sustainable energy alternative for transportation and industrial usage.
Stakeholder Support and International Collaboration
The opening ceremony also featured addresses and goodwill messages from prominent figures, including Haitham Al Ghais, Secretary General of the Organisation of Petroleum Exporting Countries (OPEC); Mohamed Hamel, Secretary General of the Gas Exporting Countries Forum (GECF); Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil); Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas); Olu Verheijen, Special Adviser to the President on Energy; and Abdulrazaq Isa, Chairman of the Independent Petroleum Producers Group (IPPG).
These industry leaders highlighted the significance of addressing Nigeria’s production challenges while fostering collaboration to ensure sustainable growth in the sector.
A Call to Action
The NNPC’s declaration of emergency marks a pivotal moment for Nigeria’s oil and gas industry, signaling a renewed focus on resolving operational hurdles and optimizing the country’s energy production capabilities. By addressing these challenges head-on, NNPC and its partners aim to position Nigeria as a leader in oil and gas production while promoting economic stability and growth.
