… NUPRC Set To Establish Rig Intervention Unit
The Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd (NNPC), Mele Kyari has assured investors that the state-ownwd company is working to replace ageing pipeline infrastructures in the country.
Kyari said this on Monday during a panel session at the launch of Project 1MMBOPD Initiative by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The event which marked the commission’s three years of existence was with the theme, ‘NUPRC@ 3: Transformation, Innovation and Excellence.’
The NUPRC announced the plan to raise crude oil production by an additional one million barrels per day to make the total 2.7mbpd in a few years.
The announcement excited investors including Totalenergies, ExxonMobil, Seplat, Chevron, Oando, among others.
However, stakeholders in the oil and gas industry identified asset integrity and aging pipeline infrastructure among others as the setbacks scaring investors.
Addressing the concern, the NNPCL boss admitted that integrity issues were militating against the inflow of investments in the oil and gas sector.
Kyari said the industry currently has a clear roadmap that will make the industry very competitive including the non-associated gas.
Kyari said, “The second part of it is about the contracting. It is said that Nigerian contractors should be encouraged to develop local content and it has created challenge which is that it has chased away all our major contractors.
“What the executive order did is to bring them back. We have engaged many of these critical contractors and many of them are on their way back into our country.
“Why will anyone put his money into our country and into our assets when he is not sure of getting the production? There is nothing around it that can resolve it. So, we have agreed that we must replace the pipeline infrastructure and there is no alternative to it.”
He said security intervention on the assets will only guarantee about 50 per cent of the installed capacity of the assets adding, “There is still nothing better you can do today.”
The GECO noted, “That is why we are taking the bull by the horns. What we are Every assurance you have around security, surveillance and so on is not a total solution in the short term.
“We know replacing pipelines is more expensive, but we know it is something that can be done and we are poised to deliver on this.”
He said the NNPCL has begun a rig-sharing programme for investors.
“We have started a rig sharing programme that will guarantee them to work for five years minimum. We believe that it will deliver the value we are expecting and actually make the work of the Commission Chief Executive of the NUPRC easy,” Kyari added.
Similarly, the CCE, Komlafe also revealed that the NUPRC is planning to establish a rig intervention unit.
He assured investors of NUPRC’s cooperation to help them harness Nigeria’s hydrocarbon reserves and increase oil production.
Komolafe said, “I promise you that as a regulator, we shall do more. We shall continue to enable your businesses and in the course of the panel session, I noted that it is possible to increase the number of rigs from 38 to 70 rigs.
“So, we are thinking already to set up a rig intervention unit in the commission. These are the things that we will put in place to further enable the industry. Also, we will ensure we work directly with the Nigerian Content Development Management Board (NCDMB) to ensure we equally facilitate approval processes in line with Mr President’s directive.”