The Nigerian National Petroleum Company Limited (NNPCL) has declared war against the challenges affecting crude oil production, affirming that Nigeria can produce two million barrels of crude oil per day without deploying new rigs.
Mele Kyari, Group Chief Executive Officer of NNPC Ltd, made this known during his keynote address at the 23rd edition of the Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja, on Tuesday.
According to him, “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,” the GCEO declared.
The GCEO NNPC emphasised that 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 promptly.
He 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.
Commenting on the 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.
He added that NNPCL is also seeking to introduce a rig-sharing programme with its partners 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.
He further 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 to boost domestic gas production and supply for power generation, industrial development, and economic prosperity of the country.
In his comment on the Compressed Natural Gas (CNG), Kyari observed that NNPC Ltd. has since keyed into the Presidential CNG drive, adding that in conjunction with partners such as NIPCO Gas, NNPC Ltd. has built several CNG stations, 12 of which will be commissioned on Thursday in Lagos and Abuja.
