The Nigerian National Petroleum Corporation, NNPC, said it targets to achieve 3 million barrels per day, BPD, oil production in no distant time.
The Group Managing Director, NNPC, Mele Kyari stated this at a media parley organized for Energy Editors at Abuja.
He said, “We have reved up exploration work in the inland basins culminating in the oil find in commercial quantity, in the Upper Benue Trough. The drilling of Kolmani River III Well is ongoing with very high prospect of oil find. Seismic data collection is ongoing in the Bida Basin and we are re-launching exploration work in the Chad Basin. We have also resolved a number of disputes that hampered production activities with a view to boosting production to meet the 3million barrels per day production target. Key among these is dispute involving Shell and Belema Oil that shut in over 30,000 barrels per day production in OML 25.
“We have also executed the Abo OML 125 Heads of Terms leading to the resolution of the issues around most of the deep offshore production sharing contracts, paving way for eventual renewal of OML 125 and further investment in exploring the lucrative field.
As regards funding, which is critical in oil production, the GMD said.
“We have also secured a number of alternative funding facilities for the NPDC and some of our Joint Ventures to facilitate the development of some of our assets. These include: the N875.75m NPDC OML 65 Alternative Funding and Technical services package with CMES-OMS Petroleum Development Company, the $3.15bn Alternative Financing Package with Sterling Exploration and Energy Production Company Limited (SEEPCO) and other partners for the development of NPDC’s OML 13.”
The NNPC boss also stated that the corporation is investing aggressively in gas to take advantage of the energy transition and get Nigeria ready for the future in the face of the dwindling fortunes of petroleum liquids.
“You may be aware of the NLNG Train 7 and other gas infrastructure projects such as the Escravos-Lagos Pipeline System Phase 2, Obiafu-Obrikom-Oben (OB3) gas pipeline, Ajaokuta-Kaduna-Kano (AKK) gas Pipeline. While the Integrated Gas Handling Facility in Edo State is billed for commissioning soon.
“All these projects are aimed at ensuring that Nigeria takes its rightful place in the emerging global energy order where natural gas is envisaged to play a pivotal role,” he said.
He however stated that according to industry analysis carried in Q1, 2020, exploration and production companies are at risk of losing about $1 trillion in revenue by the end of 2020.
“With new lockdown orders due to resurgence of COVID-19 in Europe and other industrial Nations, the estimated revenue shrinkage may likely grow above Rystad Energy estimates by the close of 2020.
“This financial impact and the resultant poor liquidity position is making funding of both existing and new projects more difficult as companies cut spending and defer projects.
“As a National Oil Company, our natural response to situation like this is NOT to shut down operations owing to the linear relationship between the oil industry and our Nation’s economy. What therefore first come to mind is how to survive and sustain our operations.
“In today’s COVID-19 defined market, sustaining operations and making progress means that all stakeholders must recognize the need to improve efficiency, reduce costs, eliminate wastages, entrench Accountability, act with Transparency and embrace technology and innovation to drive Performance and value realization across strategic investment portfolios.