The Nigerian National Petroleum Corporation, NNPCL has called for collaboration to reduce the cost of production of petroleum products in the country.
This was contained in a press release signed by NNPCL Chief Corporate Communications Officer, Olufemi O. Soneye.
According to the release, the move is towards increasing Nigeria’s crude oil production and growing its reserves.
It stated that NNPC Ltd has declared a state of emergency on production in Nigeria’s oil and gas industry.
Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari, disclosed this in a keynote address at the opening ceremony of the 23rd edition of the Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja, on Tuesday.
“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. AndWe 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.
According to him, 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.
Kyari said the “war” will help NNPC Ltd. and its partners to 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 programme with its partners. This is to ensure that production rigs stay in the country for between four and five years which is the standard practice in most climes.
Kyari, therefore, called on all players in the industry to collaborate towards reducing the cost of production and boosting production to target levels.
The GCEO, 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. This is to boost domestic gas production and supply for power generation, industrial development and economic prosperity of the country.
On Compressed Natural Gas (CNG), Kyari observed that NNPC Ltd. has since keyed into the Presidential CNG drive. He added 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 release also stated that the opening ceremony of the NOG Energy Week also saw goodwill messages and keynotes presented by key players in the industry. Among these included the Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais. Secretary General of the Gas Exporting Countries Forum (GECF), Engr. Mohamed Hamel. Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri. Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo and Special Adviser to the President on Energy, Ms. Olu Verheijen. As well as the Chairman, Independent Petroleum Producers Group (IPPG), Mr. Abdulrazaq Isa.
NNPC Ltd. is the Principal Sponsor of 2024 NOG Energy Week Conference & Exhibition which has as its theme “showcasing opportunities, driving investment and meeting energy demand.”
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