Nigeria’s national oil company, NNPC Ltd, has declared a state of emergency on production in Nigeria’s oil and gas industry as the country struggles to keep oil production.
The NNPC Ltd has also called on all players in the industry to collaborate towards reducing the cost of oil production and boosting production to target levels.
Oil theft and pipeline vandalism have long plagued Nigeria’s upstream oil and gas industry, driving majors out of the country and often resulting in force majeure at the key crude oil export terminals.
Recently, NNPC Limited called for setting of a specialised court to swiftly deal with oil theft and pipeline vandalism.
“We have decided to stop the debate. We cannot afford to negotiate further. We have declared war on the challenges affecting our crude oil production.
“Our biggest interest is to produce more oil and gas despite oil theft and other challenges.
“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,” said Mele Kyari, Group Chief Executive Officer, NNPC Ltd, at the ongoing 23rd edition of the Nigeria Oil & Gas Conference and Exhibition held in Abuja from June 30 to July 4.
Mr Kyari said a detailed analysis of assets revealed that Nigeria could conveniently produce two million barrels of crude oil daily without deploying new rigs, but decried the inability of players to act promptly as a major impediment.
He said obstacles to effective and efficient production such as delays in procurement processes and old pipeline networks were affecting the industry.
He said NNPC Ltd. would replace all the old crude oil pipelines built over four decades ago and introduce a rig-sharing programme with its partners to ensure that production rigs stayed in the country.
This, he said, would be a medium to long-term measures aimed at boosting and sustaining production.
He expressed 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.
On Compressed Natural Gas, CNG, Mr Kyari said that NNPC Ltd. had keyed into the Presidential CNG Initiative drive.
He said in conjunction with partners such as NIPCO Gas, NNPC Ltd. had built several CNG stations, 12 of which would be inaugurated on Thursday in Lagos and Abuja.
The Secretary-General of the Gas Exporting Countries Forum, GECF, Mohamed Hamel, in an address, also advocated for natural gas infrastructure and penetration for energy stability and security.
Source: https://energynewsafrica.com
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