By Adewole Kehinde
NNPC Limited achieved a significant milestone in 2024 by reaching its production target and surpassing revenue projections.
This accomplishment resulted from strategic investments in technology, infrastructure, and human capital development.
Additionally, NNPC’s commitment to transparency, efficiency, and sustainability contributed to its success in meeting the challenges of the evolving energy landscape.
The milestone marked a testament to NNPC’s dedication to excellence and innovation in the oil and gas industry.
Below are some of the milestones:
The country is steadily meeting its crude oil quota from the Organisation of Petroleum Exporting Countries (OPEC), which boosts its revenue and puts it on the path to long-term prosperity.
The Nigerian National Petroleum Company Limited (NNPC Ltd), led by Group Chief Executive Officer (GCEO) Mallam Mele Kyari, has transformed Nigeria’s oil and gas business and accomplished incredible achievements. These accomplishments include the recent attainment of 7.4 billion standard cubic feet (bscf) per day in gas production and 1.8 million barrels per day (mbpd) in crude oil output.
To guide the business and the country’s energy industry towards sustainability and growth, Kyari stayed steadfast in its commitment to innovation, teamwork, best practices from around the world, and resilience.
Mele Kyari has shown a thorough awareness of the prospects and difficulties facing Nigeria’s energy sector since taking over as leader. His term has been distinguished by audacious plans and calculated choices to keep NNPC Ltd viable and competitive in a world energy market that is changing quickly.
Kyari emphasise cooperation, creativity, and openness in her leadership approach. Under his leadership, the NNPCL has established an efficient and accountable corporate culture by using state-of-the-art technologies and cultivating relationships with important stakeholders. Along with raising production levels, this has also helped to rebuild trust in Nigeria’s oil and gas sector.
The recent rise in petrol output to 7.4 bscf per day and crude oil production to 1.8 mbpd are two of Kyari’s most noteworthy accomplishments. Compared to the 1.43 mbpd recorded in June 2024, when the Production War Room Team was established, this milestone represents a tremendous improvement.
The establishment of the Production War Room Team inaugurated on June 25, 2024, has yielded impressive results in stabilizing and boosting production outputs.
The strategic team comprises experts and key stakeholders and implements a series of interventions across the production chain to address inefficiencies and security challenges. Through collaboration with government and private security agencies, as well as Joint Venture and Production Sharing Contract partners, the team restored production levels and set the stage for sustained growth.
The success of the Production War Room and the subsequent production milestone would not have been possible without the collective efforts of various stakeholders. Speaking on the achievement, Kyari praised the team for their dedication and highlighted the importance of collaboration in driving progress.
“The team has done a great job in driving this project of not just production recovery but also escalating production to expected levels that are in the short and long terms acceptable to our shareholders,” Kyari remarked.
Other stakeholders, including Chief Pius Akinyelure, Chairman of the NNPC Ltd Board of Directors, and Senator Heineken Lokpobiri, Minister of State for Petroleum (Oil), also commended the team’s efforts and pledged continued support.
The increase in gas production to 7.4 bscf per day, in addition to the surge in crude oil production, is evidence of NNPCL’s emphasis on diversifying Nigeria’s energy mix. Natural gas is becoming a vital bridge fuel as the globe switches to greener energy sources. Nigeria is positioned as a possible leader in the global energy market due to its substantial gas reserves.
Under Kyari’s leadership, NNPC Ltd has prioritized gas development, aligning with the Federal Government’s Decade of Gas initiative. The company’s efforts in this area include expanding domestic gas infrastructure, promoting gas-to-power projects, and exploring opportunities for liquefied natural gas (LNG) exports.
Additionally, the NNPCL was instrumental in strengthening President Bola Ahmed Tinubu’s administration’s Presidential Compressed Natural Gas Initiative. One of these initiatives is the construction of 35 CNG stations throughout Nigeria in collaboration with NIPCO Gas Limited. Along with helping with toolboxes, coveralls, and generators, NNPC Retail has also taught more than 1,000 auto mechanics on how to convert cars to CNG. The PCNGi assists people and companies in converting their vehicles to run on compressed natural gas (CNG) and encourages the adoption of CNG vehicles.
Reduced reliance on fossil fuels, increased energy independence, lower energy costs for citizens, economic relief, lower transportation costs, and support for Nigeria’s national emissions reduction and climate change mitigation targets are the objectives of the effort.
The increase in crude oil and gas production has significant implications for Nigeria’s economy. As the country’s primary source of revenue, the oil and gas sector plays a crucial role in funding government initiatives and driving economic development. The recent milestone positions Nigeria to better meet its OPEC obligations while boosting foreign exchange earnings.
Additionally, increased production capacity enhances Nigeria’s ability to attract foreign investments. With a stable and secure production environment, international investors are more likely to view Nigeria as a viable destination for energy projects.
These incredible accomplishments weren’t isolated. The successes were made possible by a variety of circumstances. NNPC Ltd gave the security of its gas and oil facilities top priority under Kyari’s direction. The industry has long been beset by pipeline theft and vandalism, which has resulted in large revenue losses and production delays. The business closely collaborated with the Office of the National Security Adviser and other security organisations to monitor pipelines and safeguard assets to address this. In addition to lowering theft, these actions have guaranteed continuous manufacturing.
Besides, the company adopted innovative approaches to maximize output from existing fields while exploring new opportunities. By leveraging advanced technologies and streamlining operations, NNPC Ltd has been able to optimize production processes and achieve higher efficiency.
Kyari’s emphasis on collaboration has been a key driver of success. The coordinated efforts of Joint Venture and Production Sharing Contract partners ensured that resources and expertise were pooled to address production challenges. This partnership model has proven to be effective in driving sustainable growth.
The establishment of the Production War Room demonstrated Kyari’s proactive leadership. By closely monitoring production activities and implementing targeted interventions, the team was able to swiftly address bottlenecks and sustain momentum.
Given the current trend, NNPCL is optimistic that it will be able to attain 2 mbpd by the end of 2024. To reach this lofty goal, the NNPCL head has proposed a plan of action that includes increasing infrastructure spending, exploring new oil fields, and fortifying relationships with stakeholders. The business is also looking into ways to use renewable energy sources to make sure that the energy mix is sustainable and well-balanced.
According to the Nigerian National Petroleum Company Ltd.’s (NNPCL) 2024 profit projections, the company has already surpassed its profit target and is striving to provide greater value to Nigerians and other stakeholders.
The company also emphasised the efforts taken to save the naira by injecting $3 billion in foreign exchange liquidity into the economy and to save the Dangote Refinery by injecting $1 billion in liquidity when the refinery encountered liquidity problems.
The state-owned company’s Chief Corporate Communications Officer (CCCO), Olufemi Soneye, said these on Monday at the NNPCL Energy Relations Stakeholder Engagement, held in Abuja.
Soneye said under the visionary leadership of the Group Chief Executive Officer, Mele Kyari, NNPC Ltd has achieved groundbreaking milestones, redefining the trajectory of Nigeria’s oil and gas sector, leading to the firm’s emergence as a profitable business.
In 2023, the NNPCL delivered a revenue of N23.9tn, a significant increase from N8.82tn in 2022
The firm also recorded a surge in profit of N3.29tn, the highest in the company’s 46-year history and gross profit of N7.04tn.
Its operating profit also rose to N4.34tn as a net profit margin of 14 per cent was recorded while its operating profit margin was 18 per cent in 2024.
Soneye said the NNPCL has galvanized the push for the country’s energy sufficiency in line with the provisions of the Petroleum Industry Act, of 2021.
According to him, the restart of the Port Harcourt Refinery is one of the critical moves recently made by the company.
Soneye said, “In a historic achievement, NNPC, under Kyari’s leadership, declared profit for the first time in decades, marking a significant financial turnaround. The company has already exceeded its profit projections for 2024, a testament to the transformative reforms it has implemented.”
The CCCO also highlighted the firm’s effort to push the adoption of Compressed Natural Gas (CNG) as alternative fuel.
He said the Port-Harcourt-based refinery “marks a significant turning point in Nigeria’s quest for energy self-sufficiency, reaffirming the company’s commitment to revitalizing the nation’s refining capacity.
“NNPC has also championed the adoption of Compressed Natural Gas (CNG) as an alternative energy source, offering Nigerians a cleaner and more cost-effective solution amidst rising global energy costs.”
Another achievement the company has made is facilitating funds for the Dangote Refinery and Petrochemical when it was battling liquidity challenges.
The COO said, “A strategic decision to secure a $1bn loan backed by NNPC’s crude was instrumental in supporting the Dangote Refinery during liquidity challenges, paving the way for the establishment of Nigeria’s first private refinery.
“This initiative underscores NNPC’s dedication to fostering public-private partnerships that drive national development.”
To save the naira, the NNPCL had facilitated fundraising for the government to defend the currency through the African Export-Import Bank-backed $3bn Project Gazelle.
Soneye said, “Kyari facilitated the $3bn Gazelle loan, a critical intervention that helped stabilize the federation during a challenging foreign exchange crisis.
“As a responsible energy company, NNPC Ltd continues to strengthen Nigeria’s energy sector while solidifying its legacy as a transformative force and a global game-changer.
“Energy relations are the backbone of NNPC Ltd’s operations and strategic aspirations as an integrated energy company. In a rapidly evolving global energy landscape, fostering strong relationships with stakeholders across the value chain is not just a priority but a necessity for achieving our objectives and ensuring energy for today and tomorrow.”
Speaking on the partnership, Soneye said NNPC recognizes the role of each of the stakeholders in shaping the future of energy in Nigeria.
He said, “Together, we stand at the forefront of a transformative era in the global energy landscape, where collaboration, innovation, and sustainability are key to success.
“Energy relations are the backbone of NNPC Ltd’s operations and strategic aspirations as an integrated energy company. In a rapidly evolving global energy landscape, fostering strong relationships with stakeholders across the value chain is not just a priority but a necessity for achieving our objectives.”
According to Soneye, the energy giant remains committed to fostering meaningful relationships, driving excellence, and delivering value across the energy value chain.
He added, “This meeting underscores our shared vision to ensure energy security, economic growth, and environmental stewardship for the benefit of all.
“Energy relations are more than a strategic tool—they are integral to our mission to deliver energy for today and tomorrow, driving value for our stakeholders and empowering our nation.”
Under the year in review, the Nigeria National Petroleum Company Limited completed rehabilitation and restarted processing and production activities for subsidiary NNPC RefChem Ltd.-held Port Harcourt Refining Co. Ltd.’s (PHRC) existing 60,000-b/sd hydro skimming refinery at Alesa-Eleme near Port Harcourt in Nigeria’s Rivers State.
As of Nov. 26, 2024, PHRC was operating at 70% of its nameplate capacity as trucks began loading the recently restarted refinery’s initial production of premium motor spirit (PMS; gasoline), automotive gas oil (AGO; diesel), and household kerosine (HHK) for delivery to domestic markets, NNPCL said in a series of releases.
Following years of operational challenges resulting in the site’s underperformance, NNPCL said the completed PHRC rehabilitation project enables the refinery to produce:
– 1.4 million l.day of PMS via blending with straight-run gasoline (naphtha).
– 1.5 million l./day of AGO.
– 2.1 million l./day of low-pour fuel oil.
– 900,000 l./day of HHK.
– An unspecified volume of LPG.
Alongside plans to ramp up PHRC’s operations to 90% of the site’s nameplate capacity, NNPCL confirmed it has made “substantial progress on the new Port Harcourt [r]efinery, which will begin operations soon without prior announcements.”
Part of the PHRC rehabilitation and expansion project launched in 2021 under the Nigerian government’s broader program to rehabilitate and optimize processing capacities of its three state-run refineries—which, in addition to PHRC, include NNPC RefChem-held Warri Refining & Petrochemical Co. Ltd.’s 125,000-b/sd refinery in Delta State, and Kaduna Refining & Petrochemical Co. Ltd.’s 110,000-b/sd refinery in Kaduna State—included a complete overhaul of the 150,000-b/sd co-located at the “new” Port Harcourt complex.
Upon NNPCL’s Nov. 26 announcement, both Nigerian President Bola Tinubu and Farouk Ahmed—chief executive of the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA)—separately expressed the federal government’s reassurance of continued support to NNPCL as it works to complete rehabilitation of the KRPC and WRPC refineries.
Initiated under former Nigerian President Muhammadu Buhari, the ongoing refurbishment, optimization, and expansion of Nigeria’s state-operated refining capacity now aligns with the nation’s more-recent Renewed Hope Agenda focused on shared economic prosperity for all, which includes enhancing Nigeria’s energy security via growth of in-country refining capacity to supply higher-quality, value-added products that meet domestic demand, with surplus available for export to international markets.
In a statement published on Nov. 26 to his official social media account, Bayo Onanuga – special adviser on information and strategy to President Tinubu – said Tinubu underscores the current administration’s “determination to repair the nation’s refineries, aiming to eradicate the disheartening perception of Nigeria as a major crude oil producer that cannot refine its resources for domestic consumption.”
Another milestone is the recruitment exercise for eligible Nigerians. The Nigerian National Petroleum Corporation Limited commenced the shortlisting of candidates for the interview stage of its 2024 recruitment exercise. This follows the recently concluded Computer-Based Test (CBT) for Graduate Trainees and Experienced roles.
Successful candidates have begun receiving interview invitation emails from the organisation.
The email reads: “Thank you for participating in the Computer-Based Test (CBT) stage of the NNPC Limited Recruitment Exercise.
“Following your successful performance in the CBT, we are pleased to inform you that you have been shortlisted to progress to the next stage in our recruitment process – INTERVIEW.
“The interview will be conducted at NNPC Ltd. Corporate Headquarters in Abuja. Details regarding the date, time, and other instructions will be communicated to you in due course. Please ensure you regularly check your email for updates.
“NNPC Limited is committed to a fair, merit-based recruitment process that ensures equal opportunities for all candidates. We value diversity and inclusivity, evaluating each applicant solely on their qualifications, skills, and suitability for the role. Rest assured, everyone is treated with respect and fairness throughout the process.
“Please note that NNPC Ltd. reserves the right to disqualify you at any stage of the recruitment process if you are discovered not to have met our minimum requirements for employment,” it concluded.
Recall that NNPCL previously reiterated its commitment to transparency, diversity, and inclusivity in its recruitment process. Therefore, candidates are encouraged to prepare thoroughly for the next stage and stay updated via their email communications.
Adewole Kehinde is the publisher of Swift Reporters and can be reached via 08166240846 kennyadewole@gmail.com @kennyadewole
