Why NNPC Declared State Of Emergency On Oil Production – Mele Kyari

The Nigerian National Petroleum Company Limited (NNPC Ltd) announced a state of emergency for the country’s crude oil production on Tuesday.

Mele Kyari, the Group Chief Executive Officer of NNPC Ltd, made this announcement during the 2024 Nigeria Oil and Gas (NOG) Energy Week in Abuja.

Kyari said the goal is to boost Nigeria’s crude oil production and increase its reserves.

“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 said.

He noted that a thorough analysis showed Nigeria can produce two million barrels of oil per day without new rigs, but the main issue is slow action from industry players.

“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,” he added.

For long-term improvements, Kyari said NNPC Ltd will replace old pipelines and start a rig-sharing program with partners to keep production rigs in the country for four to five years, which is standard practice elsewhere.

He urged all industry players to work together to reduce production costs and meet target production levels.

Kyari also emphasized the company’s commitment to investing in key gas infrastructure, like the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines, to boost domestic gas production for power generation, industrial development, and economic growth.

He mentioned that NNPC has joined the presidential initiative for compressed natural gas (CNG) and, in collaboration with partners like NIPCO Gas, has built several CNG stations.

Mele Kyari further added that 12 of these stations will be inaugurated on Thursday in Lagos and Abuja.

KanyiDaily recalls that Atiku Abubakar had emphasized the need for the NNPC Limited to clarify the benefits of its newly adopted approach to privatizing oil refineries in Nigeria.