The Federal Government has identified new oil fields capable of delivering about 681,000 barrels of crude oil per day and 1.52 billion standard cubic feet of gas daily, which is expected to aid production going forward.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) made this known in a document titled ‘Nigerian Upstream Petroleum Sector: Value Optimisation, Energy Transition and Regulatory Perspectives’.
Gbenga Komolafe, the Chief Executive of NUPRC, stated that incremental volumes of crude were expected from new wells and well re-entry.
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“We have also completed the 2020 Marginal Field Bid Round and issued 50 Petroleum Prospecting Licenses to deserving awardees; It is expected that with the existing discoveries in the awarded fields, an early Field Development Plan would be pursued by the awardees leading to incremental oil and gas production,” he said.
Komolafe added that the commission is facilitating timely approvals for expedited re-entry and early production with eyes on an estimated incremental production from the awarded fields is approximately 58,000bpd and 87mmscf/d.
“In the short/medium term, we expect an estimated incremental volume of 461,000bpd and 565mmscf/d from new wells and well re-entry; In the long term, we expect an estimated incremental volume of 162,000bpd and 868mmscf/d from FDPs, which have been approved and are at various stages of execution.” He said.
The chief executive further noted that the implementation of Host Community Provisions under Section 235 of the Petroleum Industry Act 2021 saddled the commission with the responsibility of ensuring conducive and peaceful relationships among stakeholders within the host communities would be done through the implementation of the Host Communities Development Trust.
“The commission, in collaboration with the relevant stakeholders, has developed templates and gazetted regulations, which include that of the Host Community Development Trust; The essence of the HCDT is to integrate oil-bearing communities into the value chain and effectively cater for the development needs of impacted communities, thus positively curbing restiveness in such communities and offering an enabling environment for operators to thrive,” he said.
Komolafe added that this is expected to guarantee seamless operation, boost investor confidence, and provide an enabling environment for sustainable development of the country’s hydrocarbon resources
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