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Thursday, February 29, 2024

NUPRC projects  $17.67bn Investments in Upstream, 2.12bn Barrels Oil, 13.13tcf Gas Recovery in 5 Years

Ugo Amadi

In a bid to increase the nation’s revenue base, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has  projected an investment inflow of about $17.67 billion into the upstream petroleum sector with expected cumulative 2.12 billion barrels of oil and 13.13 Trillion Cubic Feet (TCF) of gas production in the next five years.

The Chief Executive Officer of the commission, Mr. Gbenga Komolafe announced this during his keynote presentation on the ongoing 7th Nigerian International Energy Summit (NIES), in Abuja, with the theme: “Navigating the New Energy World Order: Security, Transition, and Finance.”

He said the expected investments and production growth resulted from 51 Field Development Plans  (FDPs) approved between 2022 and 2023.

He also disclosed that about $2.5 billion was invested in 175 well drilling while about $2.68 billion investment was recorded in 842 well work-overs and other interventions between 2022-2023.

“(We have achieved) a total of 51 Field Development Plans (FDPs) approved in the year 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.

“(Also), a total of circa $2.5 billion investment in 175 wells drilling in the year 2022 – 2023. A total of $2.68 billion investment in 842 well work-overs and other well intervention activities in the year 2022 – 2023 resulting in increased average oil production.

“ We have further achieved 275 per cent growth in rig count from just eight in 2021 to average of 30 in the past one year,” he added.

He also listed early first oil achieved in recently streamed fields through accelerated FDPs.

Some of the fields, he said, 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, among others.

Komolafe said the commission has also intensified efforts in collaborating with the International Oil Companies (IOCs) to ensure accelerated maturation and development of some high volume deep offshore assets.

He said the Petroleum Industry Act (PIA) was being effectively implemented for growth in oil and gas reserves as well as achieving the national average daily production target set at 2.5 million barrels of oil and condensate per day in the near term.

The oil and gas reserves in Nigeria, he said, represents 30 per cent and 34 per cent of the African oil and gas reserves respectively.

He explained that a recent study by the commission revealed that growth in gas demand outstrips supply, noting that between 2020 and 2030, demand is expected to grow exponentially at a compound annual growth rate of 16.6 per cent p.a.

“Natural gas production is projected to increase from 8.0 bcfd in 2020 to 12.2 bcfd in 2030 driven by major projects such as NLNG Train 7 & Train 8, Nigeria/Morocco pipeline, Ajaokuta-Kaduna-Kano (AKK) Natural Gas Pipeline Project, and so many other gas projects,” he added.

The NUPRC chief executive, however, assured operating companies, particular the sellers and buyers in the pending divestment transaction that the regulator will not block divestment deals, but was only making sure that the deals followed due process.

Despite the low emission attributed to Nigeria, he said the commission was effectively spearheading the national drive to achieve zero flare target by year 2030 and netzero carbon emission by year 2060 through several initiatives, including the Gas Commercialisation Programme.

He said, “Let me take time to respond to issues raised by the Chairman of the Independent Petroleum Producers Group (IPPG) in respect of the issue of divestment because it is critical for us as regulator to respond in that respect. We, acting on behalf of the government of Nigeria as the regulator of the upstream, recognise that divestment is the right of licensees or operators.

“It’s a business decision clearly, but in doing so, the position of the regulator is that the divestment must follow due process. And for that reason, we have put in place robust divestment processes which we believe that if followed, will be in the interest of the government, the host communities, the seller and the buyer.

“So, what we are doing as regulator is to ensure that both the buyer and seller and of course, the government and the host communities are all on the same page.

“So, please, let the message be taken home that the regulator is in no way trying to be a showstopper in this respect. We are working collaboratively with the parties to the divestment to ensure that robust regulatory process that have been put in place intuitively by the NUPRC is followed,” he added.

James Mackreides
James Mackreides
'Mac' is a short tempered former helicopter pilot , now a writer based in Sofia, Bulgaria. Loves dogs, the outdoors and staying far away from the ocean.

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