NNPCL’S SIGNIFICANT MILESTONE
The attainment of 1.8 million barrels of crude per day is something to crow about,
reckons ADE OLUSOKAN
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It is a major milestone in the history of crude oil exploration in Nigeria. The nation is gradually hitting the mark for the crude oil quota from the Organization of Petroleum Exporting Countries (OPEC), thereby revving up the nation’s earnings and setting the country on the path of sustainable growth.
Under the visionary leadership of Mallam Mele Kyari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC Ltd), the company has achieved remarkable milestones, transforming Nigeria’s oil and gas industry. Among these achievements is the recent attainment of 1.8 million barrels per day (mbpd) in crude oil production and 7.4 billion standard cubic feet (bscf) per day in gas production.
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Unperturbed by the well-oiled campaign of critics, Kyari remained committed to best global practices, innovation, collaboration, and resilience in steering the company and the nation’s energy sector toward sustainability and growth.
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Since assuming leadership, Mele Kyari has demonstrated a clear understanding of the challenges and opportunities within Nigeria’s energy sector. His tenure has been marked by bold initiatives and strategic decisions, aimed at ensuring that NNPC Ltd remains competitive and profitable in a rapidly evolving global energy landscape.
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Kyari’s leadership style emphasizes collaboration, innovation, and transparency. By fostering partnerships with key stakeholders and deploying cutting-edge technologies, the NNPCL, under his watch, has created a culture of accountability and efficiency within the company. This has not only led to increased production levels but has also restored confidence in the Nigerian oil and gas industry.
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One of the most notable achievements under Kyari’s leadership is the recent increase in crude oil production to 1.8mbpd and gas output to 7.4bscf per day. This milestone is a significant improvement from the 1.43mbpd recorded in June 2024 when the Production War Room Team was inaugurated.
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The Production War Room, a strategic initiative envisioned and established by Kyari, played a pivotal role in this success. The strategic team comprises experts and key stakeholders, and implemented a series of interventions across the production chain to address inefficiencies and security challenges. Through collaboration with government and private security agencies, as well as Joint Venture and Production Sharing Contract partners, the team restored production levels and set the stage for sustained growth.
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The success of the Production War Room and the subsequent production milestone would not have been possible without the collective efforts of various stakeholders. Speaking on the achievement, Kyari praised the team for their dedication and highlighted the importance of collaboration in driving progress.
“The team has done a great job in driving this project of not just production recovery but also escalating production to expected levels that are in the short and long terms acceptable to our shareholders,” Kyari remarked.
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Other stakeholders, including Chief Pius Akinyelure, Chairman of the NNPC Ltd Board of Directors, and Senator Heineken Lokpobiri, Minister of State for Petroleum (Oil), also commended the team’s efforts and pledged continued support.
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In addition to an increase in crude oil production, the rise in gas production to 7.4bscf per day is also a testament to NNPCL’s focus on diversifying Nigeria’s energy portfolio. As the world transitions to cleaner energy sources, natural gas is emerging as a critical bridge fuel. Nigeria’s abundant gas reserves position it as a potential leader in the global energy market.
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Under Kyari’s leadership, NNPC Ltd has prioritized gas development, aligning with the Federal Government’s Decade of Gas initiative. The company’s efforts in this area include expanding domestic gas infrastructure, promoting gas-to-power projects, and exploring opportunities for liquefied natural gas (LNG) exports.
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The NNPCL also played a key role in deepening the Presidential Compressed Natural Gas Initiative of President Bola Ahmed Tinubu administration. These efforts include partnering with NIPCO Gas Limited to build 35 CNG stations across Nigeria. NNPC Retail has also trained over 1,000 auto mechanics on how to convert vehicles to CNG, aided with toolboxes,coveralls and generators, among others. The PCNGi supports the deployment of CNG vehicles and helps individuals and businesses convert their vehicles into CNG. The initiative aims to: reduce dependence on fossil fuels; enhance energy independence; lower energy costs for citizens; provide economic relief; reduce transportation cost and contribute to Nigeria’s national goals of reducing emissions and combating climate change.
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The increase in crude oil and gas production has significant implications for Nigeria’s economy. As the country’s primary source of revenue, the oil and gas sector plays a crucial role in funding government initiatives and driving economic development. The recent milestone positions Nigeria to better meet its OPEC obligations while boosting foreign exchange earnings.
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Additionally, increased production capacity enhances Nigeria’s ability to attract foreign investments. With a stable and secure production environment, international investors are more likely to view Nigeria as a viable destination for energy projects.
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These remarkable feats didn’t happen in isolation. There were a number of factors that made the achievements possible. Under Kyari’s guidance, NNPC Ltd prioritized the security of oil and gas infrastructure. Pipeline vandalism and theft had long plagued the sector, leading to significant revenue losses and production disruptions. To tackle this, the company worked closely with the Office of the National Security Adviser and other security agencies to monitor pipelines and protect assets. These measures have not only reduced theft but also ensured uninterrupted production.
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Besides, the company adopted innovative approaches to maximize output from existing fields while exploring new opportunities. By leveraging advanced technologies and streamlining operations, NNPC Ltd has been able to optimize production processes and achieve higher efficiency.
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Kyari’s emphasis on collaboration has been a key driver of success. The coordinated efforts of Joint Venture and Production Sharing Contract partners ensured that resources and expertise were pooled to address production challenges. This partnership model has proven to be effective in driving sustainable growth.
The establishment of the Production War Room demonstrated Kyari’s proactive leadership. By closely monitoring production activities and implementing targeted interventions, the team was able to swiftly address bottlenecks and sustain momentum.
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Buoyed by the current momentum, NNPCL is confident in its ability to reach 2mbpd by the end of 2024. This ambitious target, declared NNPCL boss, has outlined a road map for achieving the goal, which includes further investments in infrastructure, exploration of new oil fields, and strengthening partnerships with stakeholders. The company is also exploring opportunities to leverage renewable energy sources, ensuring a balanced and sustainable energy mix.
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Olusokan writes from Lagos
