BEVERLY HILLS, October 03, (THEWILL) – A gloomy outlook has been painted regarding Nigeria’s economic fortunes, as the Nigerian National Petroleum Corporation, NNPC, disclosed that the country’s crude oil and gas reserves were fast depleting.
The NNPC Group Managing Director, Dr. Maikanti Baru, who disclosed this when the Nigerian Association of Petroleum Explorationists, NAPE, hosted him in Abuja, begged oil and gas exploration companies, professionals and other stakeholders to focus on increasing the nation’s oil and gas reserve base to match national aspirations to increase oil production.
In a statement issued in Abuja on Monday, he also expressed readiness of the state-owned oil company to partner stakeholders in the oil and gas industry to grow the nation’s fast depleting reserves in order to increase productivity in the petroleum sector.
According to him, “Our national gas demand forecast to year 2020, domestic plus export, indicates a rapid growth to 15 billion Standard Cubic Feet per day (bscfd), meaning current reserves level can only sustain that production for 35 years, if we do not increase the 2bscfd gas reserves base which require three trillion cubic feet (tcf) to replace production yearly.”
The statement revealed that the country’s drive for industrialization risks being truncated, as Baru disclosed that the country’s aspirations were to increase oil production to four million barrels per day and meet gas demand of 15 billion standard cubic feet per day, bscfd, by 2020, required for industrialization and consumption.
He further lamented that less than three per cent of all oil wells drilled in the Niger Delta Basin, both onshore and swamp, were deeper than 15,000 feet, adding that a greater number of these wells had not gone beyond the 10,000 feet as a high pressure regime seemed to be a limiting factor.
Baru however stated that “some of our earlier drilled non-commercial holes could be turned around if we deploy requisite technologies; we need to change our perspective of risk as technology is advancing.”
He further explained that the 2016 national average oil production of 1.9 million barrels was low, partly due to oil infrastructure vandalism.
While harping on the need for stakeholders to share data and use common available resources to reduce cost of operations in the area of rig-sharing, vessel sharing and synergy in projects development, the NNPC boss stated that this had become even expedient in this era of low oil prices and security challenges.
Speaking on frontier exploration, Baru said the NNPC was progressing in exploration efforts in the Chad Basin, the Benue trough and other frontier basins to shore up the reserve base of the country.
On his part, the NAPE President, Mr. Nosa Omorodion, expressed the readiness of the association to support NNPC in its drive to grow reserves towards increased production in all the frontier basins.
