Nigeria declares emergency on oil and gas sector, plans to fix all vandalized oil/gas pipelines

Tue, Jul 2, 2024
By editor

Featured, Oil & Gas

By Anthony Isibor

MELE Kolo Kyari, Managing Director/CEO of the Nigerian National Petroleum Company Limiter, NNPCL says that the country has declared war on the Nigerian oil and gas sector to ensure a secured future for the industry.

Kyari, who made the disclosure on Tuesday during his keynote address at the ongoing Nigeria Oil and Gas, NOG Conference in Abuja noted that it is no more business as usual as any oil company that refuses to participate will be left behind.

He revealed that although the country continues to engage in debates as to the reasons for the shortage in oil production in the country, there have been consistent production in the last three months even with all the perceived challenges facing the industry.

Instead, he blamed the challenges in oil and gas production on sheer inability of all the oil companies, including the NNPC to act in a timely manner.

“We can blame anything, including access to capital, but what we have seen is that we are actually at 2 million barrels per day without meeting any of those things that we are talking about and that is why we as the partner of 80% of those who produce oil and gas in this country have decided that we will stop the debate, we have declared a war, war means war, we have the right tools, we know where to fight, we know what we have to do at the level of assets, and we have engaged our partners. Any partner that doesn’t do what it should do, we will get it done, this is our new way of doing things, we can’t wait for anyone. 

“From security, to asset integrity, to everything that you can think of.

“We are moving on and we cannot afford to negotiate for anybody and that is why we are looking at every asset and every issue that is associated with it, we will partner with our third parties and when it doesn’t happen, we will get it done. This is the beginning of the war.”

Kyari said that part of the plans is to fix all the vandalized oil and gas pipelines in the country, 

“We can’t continue talking, we can’t continue debating, this industry is about producing oil and gas.

“We went down in our production of oil and gas, it is nowhere near our capacity. We can blame oil theft, integrity and so on, but the bottomline is that when we look at the data of our production by assets in the last three months, we discovered that we are at 2 million barrels per day, that means we are unable to sustain it.

“As a matter of fact, we have taken another action to repair vandalized pipelines. We will not wait for anyone, we will replace these pipelines and when we do, everybody must float crude into these pipes. 

It is not just a business decision, it is a national decision, this country must do this and we are leading this. 

“Not only that, we keep talking about increasing production. We have no guarantees about the availability of rigs in this country and for this, “We will set up a rig shared club for our partners so that at the end everybody can bring to the table their drilling programme and we can all align. This is also not for debate, there is no option, every country does this, every national oil company leases rigs we are the only exception, and the reason is because some people have converted procurement into a business,” he added.

Realnews reports that the 2024 Nigerian Energy Week, with the theme: Showcasing Opportunities, Driving Investment, Meeting Energy Demand became necessary as the country continues to embark on the journey towards a more just, affordable and sustainable energy system.


July 02, 2024 @ 16:58 GMT|