As part of its efforts to ensure that Nigeria hit the three million daily crude oil production targets, the Nigerian National Petroleum Corporation (NNPC) has set out series of plans to achieve this.
Recall, when the group managing director of NNPC, Mele Kyari came on board, he promised to boost oil exploration and production with a view to raising national reserves to 40 billion barrels and production to three million barrels per day.
More than one year into his administration It is therefore important to examine the steps he has taken towards achieving this target so far.
The corporation, according to Mele Kyari during a media interaction in Abuja recently has revved up exploration work in the inland basins culminating in the oil find in commercial quantity, in the Upper Benue Trough. The drilling of Kolmani River III Well is ongoing with a very high prospect of oil find. Seismic data collection is also ongoing in the Bida Basin and it is re-launching exploration work in the Chad Basin.
Read Also: Where Nigeria, African peers stand in global oil market
Businessday investigation revealed that a number of disputes between NNPC and its partners which have hampered production activities have also been resolved with a view to boosting production to meet the three million barrels per day production target. Key among these are dispute involving Shell and
Belema Oil that shut in over 30,000 barrels per day production in OML 25.
The Abo OML 125 Heads of Terms has been executed thereby leading to the resolution of the issues around most of the deep offshore production sharing contracts, and paving way for eventual renewal of OML 125 and further investment in exploring the lucrative field.
The government has also secured a number of alternative funding facilities for the Nigerian Petroleum Development Company (NPDC) and some of its Joint Ventures to facilitate the development of some assets. These include: the N875.75m NPDC OML 65 Alternative Funding and Technical services package with CMES- OMS Petroleum Development Company, the $3.15bn Alternative Financing Package with sterling Exploration and Energy Production Company Limited (SEEPCO) and other partners for the development of NPDC’S OML 13.
OML 13 First oil of about 7,900bpd was achieved from the project on 1st April, 2020, while production is expected to peak at 94,000bpd and 542mmscfd within four years.
The Covid-19 pandemic and the subsequent OPECPlus agreement to cut production has impacted it plans and activities with regard to production growth, but it is obvious that that much has been achieved in this direction.
From all intents and purpose, it does appear that as soon as normalcy return to the industry some of these projects would be unleashed.
