The Group Chief Executive Officer (GCEO) of Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari has declared a state of emergency on crude oil production.
Gatekeepers News reports that Kyari made the declaration while speaking during a keynote address at the opening ceremony of 23rd edition of Nigeria Oil and Gas Conference and Exhibition (NOG Energy Week) on Tuesday in Abuja.
He noted that war has been declared on the challenges affecting Nigeria’s crude oil production.
Kyari said, “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.”
According to him, a detailed asset analysis showed Nigeria could easily produce two million barrels of crude oil per day without deploying new rigs.
He however added that its primary obstacle is the inability of industry players to act at the right time.
Kyari noted that the war will assist NNPC and its partners in swiftly removing all identified obstacles to efficient production, including delays in procurement processes, which is now a challenge in industry.
Speaking on medium to long-term measures to boost and sustain production, Kyari said NNPC will replace all the old crude oil pipelines built over four decades ago.
He added that the corporation will also introduce a rig-sharing programme with its partners to ensure that production rigs stay in the country for at least four or five years which is the standard practice in most climes.
Kyari further urged all players in the industry to collaborate towards reducing the cost of production and boosting production to target levels.
He emphasized the company’s commitment to investing in critical midstream gas infrastructure like the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines to boost domestic gas production and supply for power generation, industrial development, and economic prosperity of the nation.
Also, he noted that NNPC has since succeeded in presidential compressed natural gas (CNG) drive, and has constructed several CNG stations alongside NIPCO gas and some other companies.
Kyari noted that twelve of these stations will be inaugurated on Thursday in Lagos and Abuja.
