Petroleum Ministry Begins Adoption of AI to Reduce Cost, Raise Efficiency in Oil Production

Emmanuel Addeh in Abuja

The Ministry of Petroleum Resources yesterday said it was adopting Artificial Intelligence (AI) in exploration and production processes to increase efficiency and reduce cost in the oil and gas sector in the country.
Speaking at a meeting with staff of the ministry in Abuja, the Permanent Secretary, Nicholas Ella, said the move was in alignment with the priority areas established by the current administration.

He stated that the cardinal objective of the engagement was to underscore the ministry’s effort to line up with the presidential directive issued in January this year to “unlock the energy sector and natural resources for sustainable development.”
To understand the enormity and urgency of the tasks before the ministry, he urged officials to appreciate the vast energy needs of Nigerians – to power homes and industries.

“On embracing technological advancements, the ministry initiated programmes to integrate Artificial Intelligence (AI) in the oil and gas sector. AI was utilised to optimise exploration and production processes, enhance predictive maintenance of equipment, and improve decision-making through data analytics.

“By adopting AI technologies, we aimed to increase operational efficiency, reduce costs, and minimise environmental impact, thereby positioning Nigeria’s oil and gas sector at the forefront of innovation. Committees were established to oversee these initiatives and ensure their successful implementation,” he stated.
Ella stated that the federal government places a high premium on gas infrastructure development and supply, demonstrating this with the launch of the “Decade of Gas” programme and ensuring Nigeria expands the supply and distribution of gas as the major source of energy.

According to him, many states of the federation are already  latching onto the federal government’s gas expansion programme.
He stated that the government was significantly expanding gas infrastructure, including the AKK Gas Pipeline Project, the OB3 Gas Pipeline Project, and the ANOH project being undertaken by the Nigerian National Petroleum Company Limited (NNPC).

These projects, he said, are geared towards ensuring an efficient and widespread distribution of gas; positioning Nigeria as a leading gas-powered economy.
According to him, the ministry will focus on diversifying the energy mix by investing in renewable energy projects, hydrogen development and enhancing the regulatory framework to attract private investments.

“Focusing on sustainable energy, the ministry has taken significant steps in developing a hydrogen policy to diversify Nigeria’s energy mix and contribute to global efforts in reducing carbon emissions.

“This policy framework aimed to establish hydrogen as a viable alternative energy source, leveraging our existing gas infrastructure to produce green hydrogen.

“We will also ensure the full implementation of the Enterprise Content Management by filling documents digitally, providing easy access to data and information, and storing them in line with legal requirements,” Ella said.

He told the ministry’s staff that there will be zero tolerance for indiscipline, urging every employee of the ministry to live above board and act in accordance with service rules.

The ministry, he stressed, will implement a robust performance management system, setting clear Key Performance Indicators (KPIs) for departments and agencies.

In line with my mandate under the Petroleum Industry Act (PIA), he said the ministry had commenced the process of implementing the Ministry of Petroleum Incorporated (MOPI), having obtained the legal opinion of the Ministry of Justice to that effect.

Earlier in her welcome remarks, the Director  Human Resources Management, Mrs. Asma’u  Shehu Adaji, had urged the attendees to align with the aspiration of the ministry to ensure that its objectives were achieved.