The Federal Government has identified new oil fields that have the potential to deliver approximately 681,000 barrels of crude oil per day and 1.52 billion standard cubic feet of gas daily. This information was revealed in a document prepared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) titled “Nigerian Upstream Petroleum Sector: Value Optimisation, Energy Transition and Regulatory Perspectives.” The Chief Executive of NUPRC, Gbenga Komolafe, explained that incremental volumes of crude oil are anticipated from new wells and well re-entries. He noted that the 2020 Marginal Field Bid Round has been completed, resulting in the issuance of 50 Petroleum Prospecting Licenses to deserving awardees. With the discoveries in the awarded fields, it is expected that an early Field Development Plan will be pursued, leading to increased oil and gas production.
Komolafe stated that the commission is facilitating timely approvals for expedited re-entry and early production. The estimated incremental production from the awarded fields is around 58,000 barrels per day and 87 million standard cubic feet per day. In the short to medium term, an estimated incremental volume of 461,000 barrels per day and 565 million standard cubic feet per day is expected from new wells and well re-entries. In the long term, the anticipated incremental volume from approved Field Development Plans, which are at various stages of execution, is estimated to be 162,000 barrels per day and 868 million standard cubic feet per day.
Furthermore, Komolafe emphasized the importance of implementing Host Community Provisions under Section 235 of the Petroleum Industry Act 2021. This provision assigns the commission the responsibility of fostering conducive and peaceful relationships among stakeholders within host communities through the implementation of the Host Communities Development Trust (HCDT). He explained that the commission, in collaboration with relevant stakeholders, has developed templates and gazetted regulations for the HCDT. The purpose of the HCDT is to integrate oil-bearing communities into the value chain and effectively address the development needs of impacted communities. This initiative aims to reduce restiveness in these areas and create an enabling environment for operators to thrive, ultimately ensuring seamless operations, boosting investor confidence, and promoting sustainable development of the country’s hydrocarbon resources.
Komolafe also announced that over 60 Host Community Development Trusts have been approved by the commission, marking a significant milestone in the implementation of the PIA 2021. The Federal Government and its agencies have been actively working to increase the country’s crude oil output to meet the 1.8 million barrels per day quota set by the Organisation of Petroleum Exporting Countries (OPEC). Recently, the Nigerian National Petroleum Company Limited (NNPCL) reported that the country’s oil production had risen to 1.6 million barrels per day, just shy of the OPEC quota. NNPCL’s Group Chief Executive, Mele Kyari, shared this update during a meeting of industry stakeholders in Abuja, highlighting that production has recovered from its previous levels in July 2022 to the current 1.67 million barrels per day.
Kyari, represented by the Head of Upstream Investment, NNPCL, Bala Wunti, attributed this recovery to the implementation of the Detect, Deter, Destroy, and Recover policy. Additional strategies employed include the establishment of a Central Command and Control Centre for effective monitoring and coordination, the launch of a Whistle-Blowers Portal and a Crude Oil Validation Portal, as well as the deployment of surveillance tools to combat oil theft and vandalism.
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