In a drive to revitalize the oil sector and boost the country’s crude oil output, the federal government of Nigeria has discovered new oil fields that could produce about 681,000 barrels of crude oil per day and 1.52 billion standard cubic feet of gas per day. This was mentioned in a paper compiled by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and titled “Nigerian Upstream Petroleum Sector: Value Optimization, Energy Transition, and Regulatory Perspectives.”
Chief executive of NUPRC, Gbenga Komolafe, said that the commission is anticipating a rise in oil output as a result of well re-entry and new drill. He revealed that the 50 Petroleum Prospecting Licenses allotted in 2020 Marginal Field Bid Round had been awarded. With the existing finds in the awarded fields, the recent awardees are required to undertake an early Field Development Plan, which would ultimately lead to additional oil and gas production.
Increase of 461,000 bpd and 565 mmscfd volume is anticipated.
NUPRC has also committed to speed up re-entry and start production quicker by facilitating speedy approvals. From the awarded fields, extra output of about 58,000 bpd and 87 mmscfd is expected. Subsequently, in the short term, an increase of 461,000 bpd and 565 mmscfd volume is anticipated from new wells and well re-entry. As of now, authorized FDPs are predicted to increase production by 162,000 bpd and 868 mmscfd in the long run.
According to the NUPRC Chief Executive, the commission’s mandate includes the obligation of promoting conducive and harmonious relationships among stakeholders within the host communities, adding that this would be carried out through the (HCDT) Host Communities Development Trust. Implementation of Host Community Provisions is mandated under Section 235 of the Petroleum Industry Act 2021. With the Host Community Development Trust’s template, NUPRC has collaborated with key parties to provide drafts of templates and officially designated rules.
NUPRC approved 60+ Host Community Development Trusts.
The HCDT’s main goal is to meet the development requirements of the affected areas and to incorporate oil-bearing villages into the value chain. Thus, it helps to reduce unrest in these areas and creates favorable conditions in which businesses may flourish. This should improve efficiency, inspire trust among investors, and pave the way for the long-term growth of the country’s hydrocarbon reserves. As such, the commission has reached a major milestone with the approval of 60+ Host Community Development Trusts in accordance with the PIA 2021.
To further achieve the 1.8 million bpd quota allocated for Nigeria by the (OPEC) Organization of Petroleum Exporting Countries, the government and its agencies have been working to increase crude oil production. Due in large part to these efforts, daily oil output is already at 1.6 million barrels, only a few million short of the OPEC-scheduled limit. Mele Kyari, Group Chief Executive of NNPCL, said this during a conference of NNPCL’s stakeholders in Abuja.
Government implemented strategies increased oil output.
Kyari, who addressed the gathering through NNPCL’s Chief of Upstream Investment Bala Wunti, elaborated on the recovery of output from its low point in July 2022 to its present level of 1.67 million barrels per day by citing the success of the rectangle security method. The adoption of the Detect, Deter, Destroy, and Recover strategy is credited with this success. In addition to the use of surveillance tools, the Central Command and Control Centre was set up for centralized monitoring and coordination; the Whistle-Blowers Portal was introduced; and the Crude Oil Validation Portal was launched; all in an effort to combat oil theft and damage.