Abuja, Nigeria – Nigeria’s oil industry is in crisis, prompting the state-owned Nigerian National Petroleum Company Limited (NNPC Ltd.) to declare a state of emergency. The goal? To ramp up crude oil production and increase the nation’s reserves.
Mele Kyari, Group Chief Executive Officer of NNPC Ltd., made the announcement at the Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja. He vowed to tackle the challenges head-on, calling it a “war” on stagnant production.
“We have the right tools,” Kyari declared. “We know what to fight. We know what we have to do at the level of assets.” He stressed the importance of collaboration with industry partners to overcome obstacles like slow procurement processes.
Analysis suggests Nigeria has the capacity to produce two million barrels of oil daily without deploying new rigs. However, inefficiencies are holding the country back. Kyari pointed to outdated pipelines, some over four decades old, as a major culprit. To address this, NNPC Ltd. plans to replace these pipelines and introduce a rig-sharing program to ensure consistent availability of drilling equipment.
Beyond immediate fixes, Kyari emphasized the need for long-term solutions. This includes investments in critical gas infrastructure like pipelines to support domestic gas production and bolster power generation, industrial development, and overall economic prosperity.
The NNPC is also committed to the government’s push for Compressed Natural Gas (CNG). Partnering with companies like NIPCO Gas, they’ve built CNG stations, with 12 set to be commissioned soon in Lagos and Abuja.
