The Nigerian National Petroleum Company Limited (NNPCL) says it has achieved crude production of 1.8 million barrels per day (bpd) as it unveils plans to build 12 CNG stations nationwide
By Edu Abade
The Nigerian National Petroleum Company Limited (NNPCL) and its partners have revealed that crude oil and gas production has increased to 1.8 million barrels per day (mbpd) and 7.4 standard cubic feet per day (scfd) respectively.
The company, which announced this at a briefing in Lagos, said the feat was achieved in compliance with the mandate of President Bola Ahmed Tinubu.
Group Chief Executive Officer, Mele Kyari, who spoke on the development, congratulated the production war room team that anchored the production recovery process, saying: “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 based on the mandates that we have from the President, the minister and the Board,” Kyari explained.
Giving details of the efforts of the production war room, the Chief War Room Coordinator and Senior Business Adviser to the Group Chief Executive Officer, Lawal Musa, disclosed that the feat was achieved through the collaborative efforts of Joint Venture and Production Sharing Contract partners, the Office of the National Security Adviser, as well as government and private security agencies.
He said the interventions led to the recovery of production cut across every segment of the production chain, with security agencies closely monitoring the pipelines.
He stressed that when the Production War Room team was inaugurated on June 25, 2024, production was at 1.430mbpd, but the team swung into action, culminating into sustaining the production recovery to 1.7mbpd in August and hitting the current 1.808mbpd in November.
“We are confident that with this same momentum and with the active collaboration of all stakeholders, especially on the security front, we can see the possibility of getting to 2mbpd by the end of the year,” he stated.
Also speaking on the development, the Chairman of NNPCL Board of Directors, Chief Pius Akinyelure, who also congratulated the team, said he was happy to be part of the production recovery process, adding that “today, I will leave this place with my heart full of joy.”
He charged the company’s management to come up with a cashflow projection, based on the new production figures, to facilitate planning, stressing that he was looking forward to further production increase to 3mbpd.
On his part, the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, expressed satisfaction with the performance of the team and pledged the federal government’s support for the company to do more.
Meanwhile, the NNPCL has outlined its vision for Nigeria’s energy future, insisting that as pressure mounts on nations to invest more in renewable energy, Compressed Natural Gas (CNG) potential will be deployed to fill the transition gaps.
Kyari, who stated this in Lagos restated the company’s commitment to resolving Nigeria’s energy ‘trilemma’ by ensuring energy security, sustainable growth and energy affordability.
He spoke at the opening ceremony of the 42nd Nigeria Association of Petroleum Explorationists (NAPE) Annual International Conference and Exhibition with the theme: Resolving the Nigeria Energy Trilemma: Energy Security, Sustainable Growth and Affordability.
Kyari, who was Special Guest of Honour at the event, also said the company has perfected plans to deliver 12 CNG Mother Stations and Mini LNG Plants soon, as part of efforts to boost the existing 1.6bscf of gas supply for the domestic market.
He said: “The energy ‘trilemma’ is a profound responsibility we shoulder as stewards of Nigeria’s energy future. NNPCL is working tirelessly to improve our supply chain, develop new refining capacities and expand our retail network.”
According to him, NNPCL was focused on collaborating with private refineries to ensure affordable and sustainable petroleum products supply and Naira-for-crude transactions to stabilize the local currency and regulate the country’s Forex market.
This, he added, will result in the expansion of gas infrastructure such as the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and the Obiafu-Obrikom-Oben (OB3) Gas Pipelines projects and the development of cleaner energy options, such as Liquiefied Natural Gas (LNG) and Compressed Natural Gas (CNG).
“Currently, NNPCL supplies over 1.6 billion standard cubic feet (bscf) of gas per day to the domestic market through infrastructure we either own outright or operate with partners. This distribution network is entirely managed on NNPCL’s balance sheet,” Kyari added.
On why the company is making efforts to enhance domestic energy access, he explained that the next three to six months will witness significant project launches, including CNG mother stations, mini-LNG plants and additional CNG daughter stations.
Kyari, who commended President Bola Ahmed Tinubu’s efforts to relieve Forex pressures by reducing fuel imports and strengthening Nigeria’s local refining capacity, stressed the need for collaboration, innovation, and deployment of technology to achieve Nigeria’s energy goals.
“Resolving the energy ‘trilemma’ requires bold ideas, shared knowledge, and collective determination. Together, let us build a Nigeria where energy is secure, sustainable and affordable for all.”
On NNPCL’s mandate to guarantee energy security as stipulated by the Petroleum Industry Act (PIA), Kyari said the company has fostered partnerships and investments aimed at enhancing local production and generating revenue for economic diversification.
Reacting to claims that NNPCL was sabotaging domestic refineries, Kyari, who maintained that the NNPCL is a co-owner of the Dangote Refinery, further stressed that such investment remains a strategic move aimed at strengthening domestic fuel supply.
