Nigeria’s oil industry is poised for significant growth as Schlumberger, a global technology company (SLB), has signed a deal with the Nigerian National Petroleum Corporation (NNPC) to provide technical services for the country’s upstream oil and gas sector. This agreement aims to enhance exploration and production activities in Nigeria.
“This agreement is geared towards unlocking the capacities of EnServ for Nigeria, which potentially will help NNPC Ltd achieve its exploration and production targets,” SLB chief executive Olivier Le Peuch stated in a release posted by NNPC. “We look forward to using this technical partnership as a springboard to accelerate the vision that the industry needs.”
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NNPC’s CEO, Mele Kyari, expressed optimism about recent reforms in Nigeria’s oil and gas industry. He anticipates these reforms will unlock investment opportunities and streamline contracting processes in the near future.
“Quite a number of reforms are unfolding, and at the back of it is a potential release of investment that we are seeing in the short term,” he said.
“Our physical environment is excellent today; contracting processes have been reviewed by virtue of the clear reforms Mr President has put in place; and ultimately, we are already seeing substantial energy going into unlocking the opportunities of today,” Kyari added.
Speaking after the signing, Kyari highlighted that NNPC is developing a rig share platform aimed at enhancing well-drilling activities and associated operations in the coming years.
In a related development, the Nigerian government signed a deal last September with major oil companies to reduce the duration of the awarding process for development projects under existing production-sharing contracts to six months.
In May 2023, then-NCDMB Executive Secretary Simbi Kesiye Wabote announced at the Nigerian Oil and Gas Opportunity Fair that Nigeria is targeting over $50 billion worth of oil development projects between 2024 and 2028.
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Nigeria’s oil and gas reserves saw a substantial increase at the beginning of 2024. Crude oil reserves climbed to 37.5 billion barrels, while total gas reserves reached 209.26 trillion cubic feet (Tcf), according to the Nigerian Upstream Petroleum Regulatory Commission in April. These reserves include 31.56 billion barrels of crude oil and 5.94 billion barrels of condensate. The natural gas reserves are divided into 102.59 Tcf of associated gas and 106.67 Tcf of non-associated gas.
By leveraging Schlumberger’s expertise, Nigeria aims to bolster its exploration and production activities. This agreement is timely, as the country seeks to attract investment and improve its overall operating environment in the oil and gas sector, following recent reforms and a notable increase in hydrocarbon reserves.
