The Nigeria Petroleum Development Company Limited (NPDC) War Room has recorded an all-time production surge from 91,000 barrels of crude oil per day (bopd) to 155,000bopd.
The War Room was inaugurated at the instance of the Honourable Minister of State, Petroleum Resources and Group Managing Director of NNPC; Dr. Emmanuel Ibe Kachikwu in November, 2015 primarily for increase in production through the implementation of quick wins.
When the term War Room was mentioned by the former Managing Director of NPDC, Mr. Abubakar Mai-Bornu, what probably came to mind was the movie directed by Alex Kendrick. However to NPDC the term was different. It was a tactical move that was adopted by NPDC Management to boost production. Due to the dwindling crude oil prices in the global market, it became imperative that the production level of Oil and Gas should be increased as mandated by the HMSPR/GMD, NPDC Thus, the formation of the NPDC War Room by the former MD; Mr. Abubakar Mai-Bornu.
Speaking to our Correspondent, the War Room Commander, who is also the Manager Direct Assets & Petroleum Engineering Department, Mr. Tunde Ehizoje remarked that the teams are made up of visionary, energetic and dedicated personnel who were drawn from the various divisions. They collaborate and brainstorm on practical ways of improving the company’s production base.
“The successes we are celebrating today should be accorded first to the former MD for his initiative and dedication. The former MD led by example. He always appreciated efforts of the team members.
“ Our team’s ardour from inception has been overwhelming. These dedicated staff of NPDC amid tight job schedules meet daily to monitor production, brainstorm on the strategic process of increasing our oil and gas production levels on the immediate short term while also having an eye on the long term”, Mr. Ehizoje stated.
When Our Correspondents interviewed the War Room Commander, Mr. Tunde Ehizoje, he noted that the War Room is currently reviewing alternative ways to evacuate our crude oil in view of the frequent closure the Focardos Oil Terminal. Excerpts:
What is War Room?
A War Room is a place where business or political strategy is planned, current battle situations are monitored, and decisions taken.
Why War Room?
On November 11, 2015, the HMSPR/GMD, NNPC mandated NPDC to deliver 191,000bopd by December 14, 2015. At that time, NPDC’s production was about 87,000bopd. This meant that NPDC needed to boost production by 104,000bopd. In order to achieve this, the former MD constituted a War Room committee on November 12, 2015 to tackle this challenge.
Who are the War Room members?
The War Room members were drawn from Petroleum Engineering, Planning, Technical Services Division, Asset teams, Finance & Accounts as well as Community Relations. Basically, all the stakeholders were represented.
What are the achievements so far?
The War team was able to achieve an average production of 153,000bopd and 155,000bopd on the 14th and 24th of December, 2015 respectively with a potential for 181,000bopd (each asset maximum production within the period). This is approximately 78% production improvement and 81% of the GMD’s target. To achieve this within the short period, a detailed review of each field was carried out with focus on non-producing wells, facilities maintenance & uptime improvement, fast tracking of all pending production improvement activities as well as payment for the majority of outstanding invoices. The team also identified potential showstoppers and initiated counter measures to forestall them. The team encountered several challenges during this period. These include: community threats, contractors/staff labor actions due to non-payment of salaries, Trans Niger Pipeline (TNP) outage, Opuama pipeline ROW illegal refinery fire; to mention but a few. These challenges were instrumental to us not achieving the record potential of 181,000bopd.
What is the next step for the War Room team?
We are currently reviewing alternatives to crude oil evacuation at Uhgelli Pump Station (UPS) since the Forcados Oil Terminal issue is yet to be resolved. This will ensure continuous gas operation for OML 34 (This asset is the major source of gas for power) as we can’t afford to shutdown this asset. We are also reviewing the refinery evacuation option, as this will give us opportunity to resume production from some of our assets as well as ensure continuous operations in our sister company – Warri Refining and Petrochemical Company Limited (WRPC).
How do we ensure production sustenance and growth in NPDC?
To ensure production increase and sustenance, there is the need for a dedicated Well; Reservoir and Facilities Management (WRFM) team in NPDC. This function needs to be centralized for optimal staffing and it will enable the asset teams concentrate on production management. Short contracting cycle, improved invoice turnaround time, and Community Relations teams that act expeditiously are also key to performance improvement.