NNPC declares crude oil production emergency

The Nigerian National Petroleum Corporation (NNPC) Limited has declared a state of emergency on crude oil production in the country.

The company also invites all industry players to collaborate to reduce oil production costs and increase production to the targeted level.

NNPC Group Chief Executive, Mele Kyari, disclosed this at the 23rd edition of the Nigeria Oil & Gas (NOG) Conference and Exhibition on Tuesday in Abuja.

He said: “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.

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“We have the right tools. We know what to fight for. We know what we have to do at the asset level. We have engaged our partners and we will work together to improve the situation.”

Kyari said a detailed analysis of the assets revealed that Nigeria could easily produce two million barrels of crude oil daily without deploying new rigs.

However, he criticized the inability of players to act in a timely manner as a major obstacle.

He said constraints on effective and efficient production such as delays in procurement processes and aging pipelines were impacting the industry.

He said NNPC would replace all old crude oil pipelines built over four decades ago and introduce a rig-sharing programme with its partners to ensure production rigs remain in the country.

On Compressed Natural Gas (CNG), Kyari said the company has been following the President’s CNG Initiative drive.

NNPC declares emergency on crude oil production first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.