As the developments in the global oil market continues to throw up new challenges for oil producing nations, the Nigerian government has hinted of its plans to produce additional 810,000 barrels of crude oil per day from Nigeria’s deepwater oil fields through a new cluster and nodal development initiative.
Speaking at a stakeholders’ workshop on Deep/Shallow Water Cluster/Nodal Development with the theme “Harnessing the potential of deep/shallow water, oil and gas accumulations through clusters/nodal development in Nigeria” last Thursday in Abuja, the Chief Executive of the NUPRC, Engr. Gbenga Komolafe, said the plan was conceived in response to the industry’s dwindling offshore output and the need to harness untapped reserves for sustainable growth.
Represented at the event by the commission’s Executive Commissioner for Economic Regulation and Strategic Planning, Babajide Fashina, the NUPRC boss recalled that the peak of our deepwater oil production in 2016, Nigeria was producing about 800,000 barrels of oil per day, noting that the figure has now dropped to below 500,000 barrels per day.
According to him, available data at the NUPRC shows that Nigeria has over 5.13 billion barrels of oil and 13.53 trillion cubic feet of gas still sitting untapped in her deepwater acreages, and of this deposit, 3.59 billion barrels fall under 2P reserves, implying that they are proven and probable but yet undeveloped.
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Komolafe disclosed that preliminary regulatory deep-dive through the Field Development Plan approvals indicated that current developments-in-view could unlock around 1.55 billion barrels of oil and condensate and another 1.49 trillion cubic feet of associated gas.
He expressed optimism that once the approved FDPs are executed, Nigeria’s crude oil could rise by as much as 810,000 barrels of oil per day.
The Commission boss said a new Shallow and Deepwater Cluster Development Committee had been inaugurated within the NUPRC to work closely with international oil companies and indigenous producers to identify and mature these opportunities.
He said: “Our goal is not just more production, but more value. Through this collaborative approach, we want to maximise returns from existing assets, ramp up volumes, and reduce unit technical costs.”
Komolafe, who noted that the deepwater fields, despite their huge potential to increase the country’s daily crude oil output, lamented the field had become underutilised due to sundry challenges, including funding gaps, infrastructure limitations, regulatory bottlenecks and delayed project sanctions, adding that deep offshore reserves currently account for 18 per cent of Nigeria’s total oil and condensate reserves, with major discoveries such as Bonga, Agbami, Egina, and Erha fields leading the way.
He said: “Today, we have cumulatively produced over 4.4 billion barrels from our deepwater operations, thanks to companies like Shell, ExxonMobil, TotalEnergies, Agip and Chevron. But we must now move beyond the past and look toward unlocking future barrels.”
Komolafe harped on the need for faster project development timelines, including kinetic interventions and other pragmatic steps that will bring results.
The NUPRC boss also disclosed that Nigeria’s average year-to-date crude oil and condensate production currently stood at 1.75 million barrels per day, which is below the country’s technical potential of 2.2 million bpd, adding that the NUPRC believes that Nigeria can do much more with the cluster development framework, which is a realistic step toward bridging the gap and achieving our production targets.
He, therefore, urged operators to embrace the Commission’s collaborative model and commit to delivering results that would support energy security, economic stability, and prosperity for all stakeholders, stressing that it is not just about barrels but about shared value creation by exploring the opportunities in the shallow and deepwater assets in order to boost the performance of the nation’s economy.
Industry experts believe that the NUPRC collaborative initiative, if fully implemented, could raise Nigeria’s total monthly crude production by approximately 2.51 million barrels per day with condensates and enhance the Federal Government’s efforts to make Nigeria meet the OPEC+ production quotas set for the country.
