NNPC Declares State Of Emergency On Oil Production

The Nigerian National Petroleum Company (NNPC) has declared a state of emergency on oil production in a bid to increase the country’s crude oil production and reserves.

According to the Group Chief Executive Officer of NNPC, Mele Kyari, Nigeria has the capacity to produce two million barrels of crude oil per day without the need for new rigs. However, the major obstacle to achieving this goal is the inability of players to act on time.

“We have the capacity to produce up to two million barrels per day without any new rig. But the challenge is that we are not able to bring all the resources to bear because of various constraints,” Kyari said.

The state of emergency, which was declared on Tuesday, is aimed at tackling the constraints and clearing the obstacles to effective production. NNPC will work with its partners to replace old crude oil pipelines built over four decades ago and introduce a rig sharing program.

Kyari explained that the rig sharing program would allow operators to share rigs and resources to increase production, adding that the NNPC would also work with the Nigerian Petroleum Development Company (NPDC) to increase production from its assets.

The declaration of a state of emergency on oil production is a strategic move by the NNPC to increase the country’s oil production and reserves, and to also boost revenue generation.

The move is also aimed at boosting the country’s revenue generation, as the oil sector remains the mainstay of Nigeria’s economy.

Kyari stated that the NNPC is working tirelessly to increase the country’s oil production, despite the challenges posed by the COVID-19 pandemic and the decline in global oil demand.

He noted that the corporation has implemented various initiatives to improve oil production, including the establishment of the National Petroleum Development Company (NPDC) as a flagship oil producing company.

The NNPC boss also emphasized the need for the passage of the Petroleum Industry Bill (PIB), which he believes will provide a robust legal framework for the oil industry and attract more investments.

In his words, “The PIB is very important for the growth of the oil industry. It will provide a framework that will make the industry more attractive to investors.”

The declaration of a state of emergency on oil production is a bold move by the NNPC to address the challenges facing the oil sector and to boost the country’s revenue generation.