June 16, 2024

Opinion Naija

Reliable & Relevant Info

Nigeria’s oil reserve rises by 0.37% to 37.04bn barrels

Opinionnaija.com
May 7, 2022

 

ABUJA- The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, yesterday reported that Nigeria’s oil reserve expanded by 0.37 percent in the past one year to hit 37.046 billion barrels from 36.910 billion barrels.

Engr. Gbenga Komolafe, the Commission’s Chief Executive, told journalists in Abuja that natural gas reserves increased by 1.01 percent to 208.62 trillion cubic feet, up from 206.53 trillion cubic feet a year ago. The latest reserve figures, according to Engr. Komolafe, are based on reports filed by 61 operating companies as of January 1, 2022.

He explained that because Nigeria has been unable to increase oil production despite high international prices, the commission would address all problems impeding efficient and effective exploration and production activities in the country.

According to him: “The Commission recognizes that the formulation of all-inclusive strategies to increase crude oil and gas reserves (from 37 billion barrels and 208.62 TCF) requires thorough consideration of all factors militating against efficient and effective exploration and production operations. “We have therefore become more deliberate and swifter in implementing strategic actions and initiatives aimed at increasing our crude oil and gas reserves and production.  The Commission has initiated a massive campaign dedicated to the identification of oil and gas wells producing below capacity, through:

“The conflict between Russia and Ukraine and the attendant disruptions to the global gas demand-supply chain has provided Nigeria with a unique opportunity to fill this gap through the implementation of several natural gas developmental initiatives.

“As the Federal Government has declared the years 2021 – 2030 to be the Decade of Gas, the Commission is taking steps to expand and develop the Nation’s huge gas resources through enhanced gas exploration, development and utilization schemes which will lead to gas reserves growth, increased gas production, maturation of domestic and export gas market, as well as gas flare elimination.

“The Commission is currently engaging all lessees on their Natural Gas Flare Elimination and Monetisation Plan to ensure compliance with Section 108 of the PIA and boost supply to the rapidly growing gas market.

“Furthermore, in the face of the global energy transition and the need for cleaner sources of energy, gas is being positioned as our immediate transition fuel to lower the Nation’s carbon emission footprint in line with our climate change commitment.

“Additionally, we are encouraging investors to leverage on the generous gas fiscal incentives in the PIA such as zero hydrocarbon tax, reduced royalty rates, tax consolidation provisions amongst others to take Final Investment Decisions on their proposed upstream projects”.