NNPCL declares war on challenges affecting Nigeria’s crude oil production 

The Nigerian National Petroleum Company, Ltd has declared war against the challenges affecting the country’s crude oil production and further calling for collaboration between stakeholders in the oil and gas industry in the fight.  

Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari, revealed this during his keynote address at the opening ceremony of the 23rd Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja on Tuesday. 

He stated that a detailed analysis of assets revealed Nigeria can produce two million barrels of crude oil per day without deploying new rigs, but the major impediment is the industry’s inability to act promptly. 

He added that the “war” will help NNPC Ltd. and its partners swiftly remove all identified obstacles to effective and efficient production, such as delays in procurement processes, which have become a significant challenge in the industry. 

He said, “We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. 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.” 

CNG and gas infrastructure projects 

He further expressed the company’s commitment to investing in critical midstream gas infrastructure, including the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines, to enhance domestic gas production and supply for power generation, industrial development, and economic prosperity. 

Regarding Compressed Natural Gas (CNG), Kyari noted that NNPC Ltd. has aligned with the Presidential CNG initiative. In collaboration with partners like NIPCO Gas, NNPC Ltd. has constructed several CNG stations, with 12 new stations set to be commissioned on Thursday in Lagos and Abuja he said.  

What you should know  

In 2024 so far, Nigeria has failed to meet its production target in the first five months of the year. Nigeria’s plan to produce 1.78 million barrels of crude oil per day was initially hindered by the Organization of Petroleum Exporting Countries and its allies (OPEC+), which set a production quota of 1.5 million barrels per day in December, 288,000 barrels below the budget target. 

• In January, OPEC figures revealed that Nigeria’s average crude oil production was 1.42 million barrels per day, falling short of both the OPEC quota and the budget target. This figure dropped to 1.32 million barrels per day in February and further declined to 1.23 million barrels per day, according to direct communication figures from OPEC. 
• In the first quarter of the year, Nigeria, similar to 2023, failed to meet the OPEC+ production quota and the 2024 budget production target, with average production barely reaching 1.4 million barrels per day.