FG to attract $17.64bn worth of investments from 51 FDPs

The federal government has said that the 51 Field Development Plans (FDPs) approved between 2022 and 2023, will attract about $17.64 billion worth of investments into the country.

Gbenga Komolafe, the commission chief executive (CCE), of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in Abuja on Wednesday.

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The FDPs according to him, are expected to result in oil recovery of an estimated cumulative 2.12 billion barrels and gas recovery of 13.13 trillion cubic feet over the next five years.

He said, “The total of circa $2.5 billion investment in 175 wells drilling in the year 2022 – 2023. A total of USD2.68 billion was invested in 842 well workovers and other well intervention activities in the year 2022 – 2023 resulting in increased average oil production.

“Early first oil 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.”

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He stated that 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.

“Despite the low emissions attributed to Nigeria compared to the global total, we are not resting on our oars. The Commission is effectively spearheading the national drive to achieve a zero-flare target by 2030 and net zero carbon emissions by 2060 through several initiatives including a unique flare commercialisation programme –the NGFCP.

“As part of its efforts to encourage collaboration, the Commission established a College of Awardees, following the award of 49 NGFCP flare sites, to serve as a forum for the successful entities to leverage their collective experiences as well as connecting them to other stakeholders and critical support systems, bringing together world-class service providers,

Speaking on plans for the years ahead (2024-2026), Komolafe said the commission is creating more investment opportunities through licensing rounds for deepwater acreages and upcoming closed bids in 2024, aiming to boost national reserves, production, and revenue.

Komolafe said the regulatory framework emphasises fairness, transparency, and competitiveness in licensing processes to attract investors across various sectors within the oil and gas industry.

In his remarks, Abdulrazaq Isa, the chairman of the Independent Petroleum Producers Group (IPPG) stressed the need for the Federal Government to ensure the quick closure of all processes involving various pending and ongoing oil divestment plans in the country’s oil and gas sector.

Isa noted that the ongoing divestments by some IOCs in the country have created a shift towards indigenous participation and control in the country’s petroleum sector.

He underscored the potential for increased empowerment, economic growth, and sustainable resource management as indigenous operators assume greater responsibility in the development of the sector.

While commending the industry regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), for its robust framework guiding the divestment process, he called for enhanced cooperation and support from relevant stakeholders.