People & Money

PIB and Marginal Fields Allocation to Boost Nigerian Oil Reserves to 40 Billion Barrels

Nigerian Oil Reserves:

The Department of Petroleum Resources (DPR) Tuesday said Nigeria is currently looking to ramp up its oil reserves, including condensates, significantly to 40 billion barrels by 2025.

Sarki Auwalu, DPR director, said the Nigerian government would achieve the ambition by means of the anticipated rise in exploration programs from the small, marginal fields about to be handed out to investors and the proposed reform of the oil industry that would accelerate investment.

The country’s oil reserves, which were at 38 billion barrels in 2015, have been increasingly plummeting over the last five years by reason of factors varying from dearth of funds to security challenges in the oil-rich Niger Delta region and the unpredictability surrounding the planned review of oil sector legislation  that has forestalled investment in new exploration programmes.

“Nigeria’s target of 40 billion barrels oil/condensate reserve by 2025 is a realistic and achievable target,” the DPR head said at a virtual event.

“The policies and programs being implemented by the federal government, including the ongoing bid rounds for marginal oil fields, reforms in the oil and gas sector are geared toward realizing these aspirations,” he added.

Also Read: Buhari Gives Nod to the Petroleum Industry Bill, Sends Draft to Senate

The country also has its eyes set on ramping up gas reserves to 210 trillion cubic feet (tcf) by 2025 and to 220 tcf five years after.

Nigerian Oil Reserves:

As of January, Nigeria’s crude reserves stood at 36.8 billion barrels, 0.2 per cent lower than that reported a year earlier, DPR said in June.

Nigerian Oil Reserves:

Africa’s top oil producer had initially set the target of 2020 and later 2023 to lift its oil reserves to 40 billion barrels and oil production to 3 million barrels per day.

Also Read: PIB Delay: NNPC Boss Says Investors Losing Confidence in Nigeria

In June, the country opened a bid round for 57 marginal oil fields situated on land, swamp and shallow offshore terrains in the Niger Delta region, which government said would shore up oil reserves and revenues hobbled by the recent oil crash. The marginal bid round was very much anticipated after repeated failed promises. The last marginal fields bid round was held in 2005.

The marginal fields are oilfields discovered and left unattended for 10 years and above from the date of discovery, or fields that leaseholders, usually international oil majors like Shell, may consider for farm-out as part of portfolio rationalisation, the DPR said.

Nigerian Oil Reserves:

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