The Nigerian National Petroleum Corporation, NNPC, says it is determined to raise the crude oil production capacity of its exploration and production subsidiary, the Nigerian Petroleum Development Company, NPDC, to 500,000 barrels per day by 2020.
Besides, the corporation said it would also grow the company’s gas production capacity to 1,500 million standard cubic feet per day of gas within the same period.
The Group Managing Director of NNPC, Maikanti Baru, who disclosed this on Tuesday at the ongoing Nigeria Oil and Gas Conference and Exhibition in Abuja said everything was being done to achieve the set targets.
Mr. Maikanti, who delivered the keynote address titled: “NNPC’s Commercial Strategy and Priorities”, said the corporation hoped to achieve set reserve growth target as well as increase national crude oil production to three million barrels per day from the current 2.2 million barrels per day.
He also said NNPC would sustain frontier exploration in the country’s inland basins to meet government’s aspiration to achieve crude oil and gas reserves of 40 billion barrels and 200 trillion cubic feet respectively by 2020.
The NNPC GMD put the country’s current oil and gas reserves at 37 billion barrels and 192 trillion cubic feet (TCF) respectively.
Besides, efforts are currently ongoing amongst all concerned to reduce the level of gas flare by converting most of the flared volumes to ensure commerciality of the gas resources, he said.
Speaking further on gas commercialisation, Mr. Baru said efforts were on to raise between $3.6 and $4.5 billion to build the Abuja-Kaduna-Kano pipeline to help generate 3.2 gigawatts (GW) of electricity for the country.
“Beyond growing gas for the power sector, there has been a strategic positioning of the sector to support massive gas-based industrialization.
“We will incubate and midwife a portfolio of critical and mutually dependent investments (Central Processing Facilities, CPFs, Fertilizer, Petrochemical, Free Trade Zone, FTZ, infrastructure and Ports) which will jumpstart the gas revolution agenda.
“NNPC intends to develop or take equity in some of these gas-based industries such as fertilizer and others,” he said.
Another priority for the year, according to the GMD, was the rehabilitation of the refineries, adding that his management has secured the approval of the Board to pursue the rehabilitation with a view to increasing their capacity utilization to above 60 per cent.
He expressed confidence that diligent execution of the initiatives would increase the commerciality and profitability of the corporation in the near future.
At the opening of the 2017 Oil and Gas Conference and Exhibition in Abuja, on Monday, Mr. Baru said Nigerian oil and gas industry was on the path of recovery with the current crude oil price in the international market on the rise, and pipeline vandalism on the decline as a result of drop in restiveness in the Niger Delta.
Mr. Baru, who expressed delight that the NOG Conference, which could not hold last year, had returned, at a time hope was rising for the industry
He stated that there were indicators that things were beginning to shakeup for the industry.
The first indicator, according to him, was that cases of pipeline vandalism have reduced with a positive impact on crude oil production.
“We are having a lot of engagements with people in our core area of operations in the Niger Delta and this is bringing a lot of hope. If we go by the number of pipelines vandalism cases, they have dropped to an average of 20 per cent on a month as against a similar period last year. This is an indicator that calm is returning to the r”, he said.
He listed other indicators to include the rise in the price of crude oil in the international market and the renewed confidence in the industry among the international oil companies as a result of the cash call exit agreements which have guaranteed a steady flow of funds.