The Nigerian National Petroleum Company Limited (NNPC) has taken a dramatic step in its fight to boost the country’s crude oil production. During the opening ceremony of the 23rd Nigeria Oil and Gas Conference and Exhibition (NOG Energy Week), Group Chief Executive Officer Mele Kyari declared a state of emergency for the sector.
This declaration signifies a heightened focus on tackling the challenges hindering oil production in Nigeria. Kyari emphasized a “war footing” approach, indicating the NNPC’s unwavering commitment to overcoming these obstacles.
Kyari acknowledged the company’s thorough assessment of its assets, revealing a surprising fact. The analysis indicated that Nigeria has the potential to produce a significant two million barrels of crude oil per day without deploying new drilling rigs. This revelation highlights the current underperformance and underscores the urgency for improvement.
While the NNPC possesses the necessary tools and technical expertise, Kyari pinpointed a critical roadblock – sluggish decision-making within the industry. He identified delays in procurement processes as a major culprit hindering efficient production.
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The NNPC CEO emphasized the importance of collaboration. He declared their intention to work closely with all partners and stakeholders in this fight for increased oil production. Kyari stressed the need for swift action, urging a move away from prolonged discussions and towards decisive measures.
Kyari’s speech went beyond mere pronouncements. He outlined specific plans to address the identified issues. The NNPC intends to streamline procurement procedures, eliminating the logjams that have been hampering production. Additionally, they plan to replace outdated crude oil pipelines, further enhancing efficiency.
While tackling immediate challenges is crucial, the NNPC is also looking towards the future. Kyari mentioned a rig-sharing program with partners, ensuring the continued availability of this vital equipment. This initiative could significantly boost production capacity in the long term.
