In a decisive move to address Nigeria’s declining crude oil production, the Nigerian National Petroleum Company (NNPC) Limited has declared a state of emergency on oil and gas production. The announcement was made by Group Chief Executive Officer Mele Kyari during his keynote address at the 23rd 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. 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,” Kyari asserted.
Kyari highlighted that Nigeria’s oil assets have the potential to produce two million barrels of crude oil per day without the need for new rigs. However, timely action from industry players remains a significant obstacle. He emphasized that the “war” would enable NNPC and its partners to swiftly address issues such as procurement delays, which have long plagued the industry.
The NNPC plans to tackle both immediate and long-term challenges. Kyari announced that all outdated crude oil pipelines, some over 40 years old, would be replaced. Additionally, a rig-sharing program will be introduced to ensure that production rigs remain in Nigeria for four to five years, aligning with international standards.
Kyari also called for industry collaboration to reduce production costs and achieve target production levels. “We must work together to streamline operations and ensure efficiency,” he urged.
Looking towards the future, Kyari reaffirmed NNPC’s commitment to investing in critical midstream gas infrastructure, including the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines. These investments aim to enhance domestic gas production and supply, supporting power generation, industrial development, and the economic prosperity of Nigeria.
NNPC is also advancing in the Compressed Natural Gas (CNG) sector. Kyari noted that the company, in partnership with NIPCO Gas, has constructed several CNG stations, with twelve new stations set to be commissioned in Lagos and Abuja this Thursday.
The conference opening featured additional keynotes and messages from industry leaders, including Haitham Al Ghais, Secretary General of the Organisation of the 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).
