Oil Production: National Assembly Pledges Support to NNPC Ltd

●Contemplates tougher laws against crude oil theft and vandalism

[Press Release] The National Assembly has strongly supported the ongoing efforts of NNPC Limited to boost Nigeria’s crude oil production and increase its reserves, saying it will consider tougher consequences for crude oil thieves and vandals of the country’s critical hydrocarbon infrastructure.

The news was made public on Tuesday when the Joint Committee on Petroleum Resources (Upstream) of the National Assembly paid an inspection visit to the Lagos headquarters of NNPC Upstream Investment Management Services (NUIMS), an upstream arm of NNPC Ltd.

Jointly led by the committee chairmen of both houses, Senator Eteng Jonah Williams and Honourable Alhassan Ado Doguwa, the lawmakers described the threat of crude oil theft and vandalism of critical oil and gas infrastructure as major challenges to Nigeria’s revenue generation and budget targets, which must be curtailed.

In his speech, Senator Williams said it was imperative that the National Assembly come up with legislative action that would help stop crude oil theft and increase Nigeria’s crude oil production.

He said that from what was discovered at NUIMS, it is the duty of the legislator to come up with decisive measures that will help the government achieve its set goals in the oil and gas sector.

On his part, Honourable Alhassan Doguwa said that in keeping with their duties as legislators, lawmakers will expedite the strengthening of a legislative framework to check the excesses plaguing the nation’s oil and gas sector.

Doguwa, who commended the efforts of NNPC Ltd for its industry-wide security collaboration against the country’s hydrocarbon infrastructure, said there was still a lot to be done to ensure that the company increases Nigeria’s crude oil production and grows its reserves.

He said the legislature will consider employing the carrot and stick approach to address the issue, but where necessary, the stick approach should be prioritised to vehemently oppose any obstacle that hinders Nigeria’s economic growth and development.

Earlier, in his detailed presentation to lawmakers, the Chief Upstream Investment Officer (CUIO) of NNPC Ltd, Mr. Bala Wunti, described NUIMS as a trustee of Nigeria’s upstream investments that ensures the country maximises profits through effective oversight of its operating partners in Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Service Contracts (SCs).

Wunti, who commended the lawmakers for their continued support to NNPC Ltd, said the involvement of the National Assembly is crucial as it will help NNPC Ltd achieve its mandate.

“We are here to see how NASS will help us produce more barrels and deliver value to our shareholders.

“Increasing production is the new narrative and your support is needed to enable us to achieve our stated goals based on our core principles of safety, speed, compliance and efficiency,” Wunti told lawmakers.

He said that so far, industry-wide security collaboration against crude oil theft and vandalism of Nigeria’s critical hydrocarbon infrastructure, through the four-pronged strategy of “Detect, Deter, Respond and Recover”, has been instrumental in the recent recovery of some of the country’s lost barrels.

Olufemi Soneye
Corporate Communications Manager
NNPC Public Limited Company
City of Abuja.
July 16, 2024.

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