The Federal Authorities says it has mapped out plans to make sure a rise of about 810,000 barrels per day (bpd) of crude oil from the nation’s deepwater oil fields by means of a brand new cluster and nodal growth initiative.
Mr Gbenga Komolafe, Fee Chief Govt (CCE), Nigerian Upstream Petroleum Regulatory Fee (NUPRC), made this recognized in Abuja at its stakeholders’ workshop on deep/shallow water cluster/nodal growth.
The Information Company of Nigeria (NAN) reviews that the initiative, which is being championed by the NUPRC, is a part of a broader effort to revive Nigeria’s offshore oil manufacturing, which has suffered a decline in recent times.
The workshop had as its theme, “Harnessing the potential of deep/shallow water, oil, and gasoline accumulations by means of clusters/nodal growth in Nigeria.”
Komolafe, represented by Mr Babajide Fashina, Govt Commissioner, Financial Regulation and Strategic Planning, NUPRC, mentioned if absolutely applied, the extra output may elevate Nigeria’s complete month-to-month crude manufacturing by 2.51 mbpd with condensates.
This, he mentioned, would considerably strengthen the nation’s income era capability and enhance compliance with OPEC+ manufacturing quotas.
He mentioned the plan was conceived in response to the business’s dwindling offshore output and the necessity to harness untapped reserves for sustainable development.
“On the peak of our deepwater oil manufacturing in 2016, Nigeria was producing about 800,000 bpd. Sadly, that determine has now dropped to under 500,000 bpd,” he mentioned.
The CCE defined that its knowledge confirmed that there are over 5.13 billion barrels of oil and 13.53 trillion cubic toes (tcf) of gasoline nonetheless sitting untapped within the deep-water acreages.
He mentioned of this, 3.59 billion barrels fell beneath 2P reserves, which means that they had been confirmed and possible however not but developed.
“A preliminary regulatory deep dive by means of the Discipline Growth Plans (FDPs) approvals signifies that present developments in view may unlock round 1.55 billion barrels of oil and condensate and one other 1.49 tcf of related gasoline.
“As soon as these authorized FDPs are executed, we may see peak oil manufacturing rise by as a lot as 810,000 barrels of oil per day.
“A brand new Shallow and Deep Water Cluster Growth Committee was inaugurated inside the NUPRC to work carefully with Worldwide Oil Corporations (IOCs) and indigenous producers to determine and mature these alternatives.
“By this collaborative method, we need to maximise returns from current property, ramp up volumes, and cut back unit technical prices,” he mentioned.
Komolafe expressed dissatisfaction that despite the massive potential, the deepwater fields had been underutilised on account of challenges comparable to funding gaps, infrastructure limitations, regulatory bottlenecks, and delayed challenge sanctions.
He mentioned the eight Floating Manufacturing Storage and Offloading (FPSO) models had been grossly underutilised, including that with collaboration, extra could be achieved.
The CCE added that deep offshore reserves at the moment account for 18 p.c of Nigeria’s complete oil and condensate reserves, with main discoveries such because the Bonga, Agbami, Egina, and Erha fields main the way in which.
He mentioned that at the moment the nation had cumulatively produced over 4.4 billion barrels from deep-water operations with contributory efforts from Shell, ExxonMobil, TotalEnergies, Agip, and Chevron.
Komolafe, nonetheless, urged operators to embrace its collaborative mannequin and decide to delivering outcomes that will drive vitality safety, financial stability, and prosperity for all stakeholders.
The Govt Commissioner for Growth and Manufacturing at NUPRC, Enorense Amadasu, mentioned unlocking the manufacturing would depend on executing already-approved FDPs and adopting new cost-saving frameworks.
Amadasu, in a presentation, mentioned execution of the authorized growth plans in deep offshore fields was anticipated to usher in an extra 810,000 bpd.
“This isn’t simply theoretical. We have already got initiatives like Bonga North which have taken remaining funding choices, and several other extra, just like the Owowo, Zaba Zaba, Eta, NAE, and others, are in view,” he mentioned.
He mentioned that a number of challenges, together with excessive know-how prices, uneconomic standalone developments, and delays in remaining funding choices, have slowed progress.
“We’ve got recognized over 20 key deepwaterassets comparable to Owowo, Nsiko, Bolia, Aparo, Bonga South West, Doro, Sheki, Akpo West, and others. Whereas some could lack scale individually, they’ll grow to be viable if developed collectively,” he mentioned.
On authorities incentives, Amadasu cited ongoing interventions, together with zero hydrocarbon tax on deepwaterfields beneath the Petroleum Trade Act, in addition to Presidential Directives 40, 41, and 42.
These directives, he mentioned, would tackle the problem of tax incentives for non-associated gasoline and speed up native content material compliance and price reductions in contracting cycles. (NAN)
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