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The Nigerian National Petroleum Company (NNPC) Limited has declared a state of emergency on oil and gas production in Nigeria.
Group Chief Executive Officer of the company, Mele Kyari, disclosed this in a keynote address at the opening ceremony of the 23rd edition of the Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja, on Tuesday.
“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.
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“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,” he declared.
According to him, a detailed analysis of assets revealed that Nigeria can conveniently produce two million barrels of crude oil per day without deploying new rigs, but the major impediment to achieving that remains the inability of players to act in a timely manner.
He said the “war” would help NNPC and its partners to speedily clear all identified obstacles to effective and efficient production such as delays in procurement processes, which have become a challenge in the industry.
On medium to long-term measures aimed at boosting and sustaining production, Kyari said NNPC would replace all the old crude oil pipelines built over four decades ago and also introduce a rig sharing programme with its partners to ensure that production rigs stay in the country for between four and five years which is the standard practice in most climes.
He called on all players in the industry to collaborate towards reducing the cost of production and boosting production to target levels.
He expressed the Company’s commitment to investing in critical midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines to boost domestic gas production and supply for power generation, industrial development and economic prosperity of the country.
On Compressed Natural Gas (CNG), Kyari observed that NNPC has since keyed into the Presidential CNG drive, adding that in conjunction with partners such as NIPCO Gas, NNPC Ltd has built a number of CNG stations, 12 of which will be commissioned on Thursday in Lagos and Abuja.
Meanwhile, the average retail price paid by consumers for Premium Motor Spirit (Petrol) in May 2024, increased astronomically to about ₦937 per litre in Jigawa State, according to the latest report of the National Bureau of Statistics (NBS).
The report ‘Premium Motor Spirit (Petrol) Price Watch (May 2024)’, said on a state profile analysis, that consumers in Jigawa State paid the highest price of ₦937.50 for petrol, signaling a continuous rise in the price of the commodity since the removal of petrol subsidy by President Bola Tinubu on May 29, 2023.
The report further said the average price paid for petrol was ₦769.62, indicating a 223.21 percent increase compared to the value recorded in May 2023 (N238.11).
Likewise, comparing the average price value with the previous month (i.e. April 2024), the average retail price increased by 9.75 per cent from ₦701.24.
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On State profile analysis, Jigawa State had the highest average retail price for the commodity at ₦937.50, Ondo and Benue States were next, with ₦882.67 and N882.22, respectively.
On the other side, Lagos, Niger and Kwara States had the lowest average retail prices, at ₦636.80, ₦642.16 and ₦645.15 respectively.
Lastly, on the Zonal profile, the North-West Zone had the highest average retail price of ₦845.26, while the North Central Zone had the lowest price of ₦695.04.
Following the removal of petrol subsidies, the inflation rate rose to as high as 33.95 per cent as of May, according to NBS, with food inflation as high as 40 per cent.
The NBS’s latest release on pump prices heading towards ₦1,000 per litre in the North, comes on the heels of the Nigerian National Petroleum Company Limited (NNPCL), saying that it would not increase petrol prices in its retail outlets across the country.
The company currently sells at around ₦568 per litre at its retail outlets, from around ₦238 as of May 2023, according to NBS.
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