The country is a leader in production in Africa and is a member of OPEC.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced a licensing round.
The new licensing round, during which the government grants companies rights to explore and extract oil on a competitive basis, will last approximately 6 months. It is noted that the Commission prioritizes technical competencies, financial capabilities, and realistic development plans.
The main goal is to increase oil and natural gas reserves in the country through active exploration and development of fields. It is also expected that investments of 10 billion USD will be attracted.
Fifty oil and gas blocks are up for bidding, of which:
- 5 are onshore,
- 19 are located in shallow waters,
- 15 are on the continental shelf boundary,
- 1 is in deep water.
NUPRC has processed thousands of kilometers of 2D and 3D seismic data, obtaining clearer images of hydrocarbon systems and reducing the level of uncertainty that previously hindered exploration decisions. Exploration is also ongoing in the Niger Delta:
According to NUPRC forecasts, oil production in the country could increase by approximately 2 billion barrels over the next decade. If all proposed fields are brought into operation, the daily production volume will reach 400,000 barrels.
According to NUPRC head G. Komolafe, since the beginning of this year, 46 development plans have been approved, the number of active drilling rigs has exceeded 60, and crude oil production has risen to 1.71 million barrels per day, peaking at 1.83 million barrels.
He also emphasized that the recently approved final investment decisions, including the allocation of 5 billion USD for the Bonga North project, 500 million USD for the Ubeta Gas project, and 2 billion USD for the HI Gas project by Shell, reflect increased investor confidence in Nigeria's oil and gas sector.
Nigeria is considered a leader in oil production in Africa and is a member of OPEC. About 20% of the oil imported by the United States comes from this country. By 2030, local authorities plan to increase domestic oil production to 4 million barrels per day. Additionally, Nigeria has the largest natural gas reserves in Africa – over 200 trillion ft3 (5.7 trillion m3) and is the largest African exporter of liquefied natural gas (LNG).
In recent years, oil and gas majors have been reducing their presence onshore and focusing on developing offshore fields, as the security level at sea is higher. The key oil-producing region of Nigeria – the Niger Delta – not only accounts for a significant portion of the country’s hydrocarbon production but is also one of the most problematic areas. There remains high activity from groups engaged in illegal tapping, oil theft, and vandalism, which regularly leads to raw material losses and damage to critical infrastructure. Against the backdrop of the exit of major international players, Nigerian companies are emerging as key participants in the development of national oil and gas resources, buying up their assets.
Leave a comment