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The Nigerian National Petroleum
Company Limited (NNPCL) yesterday promised to surpass the 2024 budget benchmark
of 1.78million barrels per day (Mbpd).
Its Group Chief Executive
Officer, Malam Mele Kyari, who gave the assurance recalled that in 2022, the
country was producing as low one million barrels per day owing to security
challenges.
According to him, the production
is now near 1.7mb/d.
The NNPCL boss disclosed this
while delivery his keynote address at the Society of Petroleum Engineers
(Oloibiri Lecture Series and Energy Forum (SPEOLEF) in Abuja.
The theme of was "Stability
in the Energy Sector: Integrated Strategies for Infrastructure, transportation
and security.
He said: "In 2022, we were
close to a million barrels or less. The intervention and with the security
architecture we have in place today we are we are close to 1.7million barrels.
"We know that by the end of
the year, we will be able to meet, first the budget target for the country and
potentially exceed it."
He noted that NNPCL is working
with its partners to address the security challenges.
He lamented that half of
Nigeria's population has no access to energy.
According to him, there is need
to first gain access to energy before considering its security.
Kyari said Nigeria has to bridge
the energy gap before mulling how to secure it.
He noted that "It is a huge
gap we have to fill before we even worry about security. You can't secure what
you don't have.
"We will work hard to build
the bridge to fill that gap with a step further and ultimately we will see that
progress in our country. But we have to first of all address the security
challenges."
He said the most sought-after
energy security cannot be attained without the right infrastructure in place.
He said owing to the company's
understanding of its role, it is investing in gas for domestic supply and gas
to power.
He said the understanding has
necessitated the state-owned firm's determination to increase the supply of gas
to domestic market to 8billion standard cubic feet (scuf).
"This is our understanding
of our role and that is why we are completely determined to see delivery of the
best and fundamental infrastructure for
gas and increase of gas to our domestic market to at least 8bscuf."
Meanwhile, the Nigerian Upstream
Petroleum Regulatory Commission (NUPRC), Chief Executive Officer, Engr. Gbenga
Komolafe also stressed the need for increased oil and gas production.
Represented by Executive
Commissioner, Development and Production, Mr. Enorense Amadasu, he said
although the actual national production average 1.3mb/d of oil and 256,000
barrels of condensate per day, the national technical production potential
currently stands at 2.26bb/d.
Komolafe added that closing the
gap between actual oil production and the technical potential is a significant
opportunity for Nigeria to unlock additional revenue stream, address the
current forex situation and strengthen its economic resilience, enhance
security of oil and gas infrastructure and transportation facilities.
He said since 1956, the Nigerian
Upstream Oil and gas landscape has grown with the development of several oil
and gas facilities with over 256CUF, 2,777 producing streams, 188 production
stations, four gas terminals, six FPSO, 18LPSO and different other facilities
at different stages of development.
According to him, Nigeria is
poised to boost production and enhance energy security.
The Commission's boss said
however, given the prevailing security challenges in the country, deliberate
production of this oil and gas assets is paramount as they are critical not
just for the country economy but also for the welfare of the citizens.
He said through collaboration
with industry stakeholders, the commission
has sustained its commitment in implementing various measures to curb
vandalized and crude oil theft through increased surveillance, security, and
working with the security agencies.
He recalled that the upstream
industry has in recent time increasingly enhanced the architecture of its oil
and gas infrastructure containing the syndicates who often target oil and gas
infrastructure to siphon oil for illegal sale.
The activities of the syndicate,
he said, have led to so many losses for the government and companies and
stakeholders.
He added that it increased the
cost of production as well as environmental consequences and demarkets the
nation's competitiveness.
Komolafe revealed that the
commission has therefore promoted the implementation of alternative crude oil
evacuation systems.
He recalled that before then this
was not in place but because of the challenges, NUPRC introduced it to avert
losses.
Earlier, the Minister of State
for Petroleum Resources (Oil) Senator Heineken Lokpobiri said integrated strategies for security must involve
proactive measures to prevent and deter illegal activities, as well as robust
response mechanisms to mitigate the impact of security incidents.
The Director of Upstream, Engr.
Busari Kamar, who represented him called for the deployment of advanced
surveillance technologies, strengthening collaboration between government
agencies, law enforcement, and local communities.
He sought the addressing of the
underlying socio-economic drivers of insecurity, such as poverty and
unemployment, which, he said, is crucial to achieving lasting stability in the
energy sector through implementation of the Host Community Trust Fund, Gas
Infrastructure Fund and other intervention mechanism.
Lokpobiri also said there has
been "concerted efforts in addressing security threats in the sector, with
the awarding of surveillance contract Tantita Security Service Nigeria Limited
that has culminated in substantial increase in production.
"From the foregoing, it is clear that all
three key areas mentioned in this discuss are interrelated and the approach in
handling every of the current challenges are not mutually exclusive which is
why the government will continue to look for better methods and take advantage
of modern technological approach in resolving some of the bottlenecks we have
in the sector," he said.
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