By Enyichukwu Enemanna
Nigerian National Petroleum Company (NNPC) Limited has declared a state of emergency on the production of crude oil in the country, aiming to increase the West African nation’s daily capacity.
“We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production,” the state-owned oil company’s Group Chief Executive Officer (GCEO) said on Tuesday in Abuja.
The event was the opening ceremony of the 23rd edition of the Nigeria Oil and Gas Conference and Exhibition, also called NOG Energy Week.
War has been declared on the challenges affecting Nigeria’s crude oil production, he stated.
“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 NNPC chief said a detailed asset analysis showed Nigeria could easily produce two million barrels of crude oil per day without deploying new rigs, but the primary obstacle is the inability of industry players to act promptly.
He said the war will enable NNPC and its partners to swiftly remove all identified obstacles to efficient production, including delays in procurement processes, which have become a challenge in the industry.
NNPC will replace all the old crude oil pipelines built over four decades ago, Kyari stated, as a medium and long-term measure to boost and sustain production.
He said the corporation will also 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.
The NNPC GCEO called on all players in the industry to collaborate towards reducing the cost of production and boosting production to target levels.
