Nigeria’s Oil Reserve Sees Growth

Oil reserve

The Nigerian Upstream Petroleum Regulatory Commission, NUPRC gave their recent reports on Nigeria’s oil reserve. The organization disclosed yesterday that Nigeria’s oil reserve grew by 0.37% in the past year to hit 37.046 billion barrels from 36.910 billion barrels.

Natural gas reserves also grew by 1.01 percent to 208.62 trillion cubic feet from last year’s reported 206.53TCF. Engr. Gbenga Komolafe, NUPRC’s Chief Executive, said this to journalists in Abuja. Komolafe explained that the latest reserve figures were based on reports filed by 61 operating companies as of January 1, 2022.

Nigeria’s inability to boost oil production despite the increasing prices on the international market raised concerns. Engineer Komolafe explained how the NUPRC will address preventing efficient and effective exploration and production operations in the country.

His quotes about Nigeria’s oil reserves are:

“The Commission recognizes that the formulation of all-inclusive strategies to increase crude oil and gas reserves (from 37 billion barrels and 208.62 TCF) requires thorough consideration of all factors militating against efficient and effective exploration and production operations. “We have therefore become more deliberate and swifter in implementing strategic actions and initiatives aimed at increasing our crude oil and gas reserves and production.  The Commission has initiated a massive campaign dedicated to the identification of oil and gas wells producing below capacity, through:

“The conflict between Russia and Ukraine and the attendant disruptions to the global gas demand-supply chain has provided Nigeria with a unique opportunity to fill this gap through the implementation of several natural gas developmental initiatives.

“As the Federal Government has declared the years 2021 – 2030 to be the Decade of Gas, the Commission is taking steps to expand and develop the Nation’s huge gas resources through enhanced gas exploration, development and utilization schemes which will lead to gas reserves growth, increased gas production, maturation of domestic and export gas market, as well as gas flare elimination.

“The Commission is currently engaging all lessees on their Natural Gas Flare Elimination and Monetisation Plan to ensure compliance with Section 108 of the PIA and boost supply to the rapidly growing gas market.

“Furthermore, in the face of the global energy transition and the need for cleaner sources of energy, gas is being positioned as our immediate transition fuel to lower the Nation’s carbon emission footprint in line with our climate change commitment.

“Additionally, we are encouraging investors to leverage on the generous gas fiscal incentives in the PIA such as zero hydrocarbon tax, reduced royalty rates, tax consolidation provisions amongst others to take Final Investment Decisions on their proposed upstream projects”.

Author: Newstopz400

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