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NNPC, US drilling firm sign deal to boost oil exploration, production

NNPC, US drilling firm sign deal to boost oil exploration, production
May 24
10:04 2024

The Nigerian National Petroleum Company Energy Services Limited (EnServ) and Schlumberger (SLB), a United States offshore drilling company, have signed a technical partnership agreement towards boosting exploration and production (E&P).

According to a statement on May 23 by Femi Soneye, NNPC spokesperson, this is part of strategic reforms aimed at unlocking opportunities in the nation’s oil and gas industry.

The agreement was signed at NNPC’s headquarters in Abuja on Thursday, with senior management teams from both companies in attendance.

Speaking shortly after the signing, Mele Kyari, NNPC group chief executive officer (GCEO), described the ongoing reforms within the industry as a catalyst for the potential release of investments in the short term.

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“Quite a number of reforms are unfolding, and at the back of it is a potential release of investments that we are seeing in the very short term,” he said.

“Our physical environment is excellent today; contracting processes have been reviewed by virtue of the clear reforms Mr. President has put in place; and ultimately, we are already seeing substantial energy going into unlocking opportunities of today.” 

Kyari said it would result in increased activity and more drilling activities would add value to the two organisations.

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He revealed that NNPC was developing a rig share platform with a definite plan around well drilling activities and associated operations in the coming years.

According to the GCEO, this would increase crude oil output and support the ongoing plan to deepen gas utilisation within the country.

Kyari, who expressed confidence in the long-standing relationship between NNPC and SLB, said the national oil company would leverage the assets within its control to expedite the benefits of the partnership.

“We are counting on Schlumberger (SLB) as our partners of 70 years. We are in business; we see the opportunities and strategic need to work with you and ultimately, we will create value for our country,” he said.

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In his remarks, Olivier Le Peuch, chief executive officer (CEO) of Schlumberger, said the agreement is poised to accelerate the achievement of Nigeria’s exploration and production targets, thereby promoting the country’s economic expansion and prosperity.

“We are here to celebrate the strategic partnership that we signed with EnServ as a technical partner. This agreement is geared towards unlocking the capacities of EnServ for Nigeria, which potentially will help NNPC Ltd. to achieve its exploration and production targets,” Le Peuch said. 

“We look forward to using this technical partnership as a springboard to accelerate the vision that the industry needs.”

Having operated in Nigeria for 70 years, he said Schlumberger remains committed to investing in local talents and building capacity through technology and performance.

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Le Peuch said the company is pleased to be at the forefront of the transition and is positioned to support NNPC’s operations with technical technology and capacity to the country.

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