Oil Producers Urge President Tinubu to Declare Crude Supply Emergency for Dangote Refinery

Amid escalating concerns over insufficient domestic crude oil supply to the Dangote Petroleum Refinery and other local refiners, the Independent Petroleum Producers Group (IPPG) has called on President Bola Tinubu to declare a state of emergency on crude oil production in Nigeria. This appeal is a response to the ongoing crisis impacting the sector.

The IPPG, comprising 28 Nigerian indigenous upstream exploration and production companies, including Oando Plc, Aiteo, Seplat, Energia, Eroton, First E&P, and Green Energy, warned of the potential for the 2024 budget to be only partially implemented due to the recent decline in crude production. Nigeria’s oil output has dropped from over 1.4 million barrels per day (excluding condensates) in January to approximately 1.2 million barrels per day in April.

At the Nigeria Oil and Gas conference in Abuja, Abdulrazaq Isa, Chairman of the IPPG, underscored the urgent need for extraordinary measures to address the industry’s long-term sustainability. He proposed that the President might need to declare a state of emergency in the oil and gas sector to expedite recovery efforts.

Responding to these concerns, Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), announced a state of emergency on production in Nigeria’s oil and gas industry. Kyari asserted, “We have declared war on the challenges affecting our crude oil production. We have the right tools, and we know what to fight.”

Additionally, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, urged oil producers to boost their investments in the upstream sector to increase oil output. He emphasized that if each of the 28 IPPG members could produce at least 5,000 barrels daily, it would significantly enhance Nigeria’s oil production.

NNPC has also implemented medium to long-term strategies to boost and sustain production, such as replacing old crude oil pipelines and introducing a rig-sharing program with partners to ensure that production rigs remain in the country for four to five years, aligning with global standards. Furthermore, NNPC has engaged in the Presidential Compressed Natural Gas (CNG) drive and plans to inaugurate 12 CNG stations in Lagos and Abuja.