(Oil Price)– Nigeria could tap 1.7 billion barrels in new oil supply as well as 7.7 trillion cu ft of natural gas after the approval of 43 field development plans this year.
The figures were reported by the chief executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, as quoted by Nigerian media. The executive added that the field plans involved the commitment of some $20 billion in investments.
Komolafe also reported that three final investment decisions made this year—for Bonga North, for Ubeta Gas, and for HI Gas Project—would tap into some 2 trillion cu ft in new natural gas supply. The FIDs total $7.5 billion, of which $5 billion is for Shell’s Bonga North, another $2 billion for the HI Gas Project, also run by Shell, and $500 million for TotalEnergies’ Ubeta Gas project.
Nigeria’s national oil company is set to increase oil production to 2 million barrels daily over the next two years, its executive vice president for upstream said. By 2030, NNPC will be pumping 3 million barrels daily, Udy Ntia also said earlier this month. Current production averages between 1.7 and 1.83 million barrels daily, after reforms enacted by President Bola Tinubu, aimed at stimulating more investments into the industry.
Meanwhile, an audit commissioned by Nigeria’s parliament found that the state had lost some $300 billion to oil theft and pipeline vandalism. The findings are interim, and the final tally could end up being even higher.
Pipeline vandalism and oil theft have been two reasons for Nigeria’s oil production decline as they discourage additional investments that are much needed for a reversal in production trends. Another reason has been Big Oil’s strategy that has seen the supermajors curb their presence in Nigeria in favor of other locations with better prospects. Nigeria’s government is hoping to reverse these trends with the legislative reforms and the prosecution of pipeline theft and vandalism.
By Irina Slav for Oilprice.com
