A total of $22.8 billion is expected to be attracted to the approximately 1,068 oil and gas projects that are now underway nationwide and have been sanctioned between 2022 and 2023, the Federal Government said on Wednesday.
It revealed this information during a panel discussion at the 7th Nigeria International Energy Summit, which is presently taking place in Abuja. It also stated that Nigeria currently has 2.26 million barrels per day of technical potential for crude oil production.
The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) was used by the government to make this revelation after its chief executive, Gbenga Komolafe, informed summit attendees that the nation was getting closer to the oil output cap set by the Organization of Petroleum Exporting Countries.
Speaking on what he called the the ” success story” in Nigeria’s oil sector, Komolafe said, “A total of 51 field development plans were approved in the yearss 2022–2023, expected to attract a total $17.64 billion investment inflow as well as deliver cumulative oil recovery and gas recovery estimated at 2.12 billion barrels and 13.13 trillion cubic feet,, respectively,, in the next five years.
“A total of circa $2.5 billion in investment in 175 wells drilling in the years 2022–2023. A total of $2.68 billion was invested in 842 well workovers and other well intervention activities in the years 2022–2023, resulting in increased average oil production.
“275 percent growth in rig count from just eight in 2021 to an average of 30 in the past year. Early-first oil was achieved in recently streamed fields through accelerated FDPs.
“Some of the fields include: Ikike (total), Efe field (Newcross), Utapate (NEPL), Akubo field (SEEPCo), Oyo (general hydrocarbon), and several others streamed under Extended Well Tests, including Ethiope, Omefejo, Ofa, Olure, Ibom, Apani, Kalaekule, etc.”
He explained that though the actual national crude oil production currently averages 1.33 million barrels per day and 256,000 barrels of condensate per day, the national technical production potential currently stands at 2.26 million bpd, while the current OPEC quota is 1.5 million bpd.
“Closing the gap between actual oil production and the technical potential presents a window of investment opportunities for investors and a significant opportunity for Nigeria to unlock additional revenue streams, address the current foreign exchange gap, and strengthen her economic resilience. So there is opportunity in every disability,” Komolafe stated.
He said the commission had also intensified efforts to collaborate with international oil companies to ensure accelerated maturation and development of some high-volume deep offshore assets.
“The commission has created further investment opportunities through the ongoing licensing round for seven deepwater acreages, as well as the proposed 2024 closed bids expected to increase the nation’s reserve and production and boost national revenue.
“At this point, permit me to reiterate that both open and closed bids are permissible by the law,, as Section 73(1) of the PIA does not preclude either approach, so far as the licensing round is ‘…based on a fair, transparent,, and competitivebidding process’.”
The NUPRC boss noted that in addition, huge opportunities also exist in Seismic acquisition on multiclient basis, development of deeper hydrocarbon opportunities, drilling and well services in both green and several mature fields, waste management, etc.
systems“There are also business prospects in decarbonisation and carbon-pricing system currently being stewarded by the commission. Each of these areas providess a unique entry point for willing investors,” Komolafe stated.
