Nigeria Targets 810,000 BPD Oil Boost from Deepwater Fields
The Nigerian government has announced a significant plan to increase the nation's oil production by an additional 810,000 barrels per day (bpd) from its deepwater operations. This ambitious goal will be achieved through a new "cluster and nodal development initiative," spearheaded by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
This strategic move comes in response to a noticeable decline in deepwater oil production. While Nigeria's deepwater fields once peaked at around 800,000 bpd in 2016, output has since dropped to below 500,000 bpd. The NUPRC's initiative is designed to reverse this trend and maximize the nation's vast hydrocarbon potential.
Here are the key details of the plan:
Objective: The primary goal is to unlock an additional 810,000 bpd of crude oil by implementing newly approved Field Development Plans (FDPs) for deep offshore fields. This is a crucial component of Nigeria's broader strategy to increase its overall crude production, which is currently operating below its technical capacity.
Untapped Potential: According to the NUPRC, the deepwater acreages still hold over 5.13 billion barrels of oil and 13.53 trillion cubic feet of gas in untapped reserves. The newly approved FDPs are expected to unlock approximately 1.55 billion barrels of oil and condensate from these reserves.
Government Strategy: The government is actively working to create a more attractive environment for investment in deepwater projects. This involves streamlining licensing procedures, establishing more transparent fiscal terms, and resolving long-standing disputes with international oil companies (IOCs). This pro-investment approach has already begun to yield results, with major commitments from companies such as ExxonMobil and Shell.
Economic Impact: A successful implementation of this initiative would not only substantially increase Nigeria's oil revenue but also help the country meet its OPEC+ production quotas. Furthermore, the boost in output would play a vital role in stabilizing Nigeria's foreign exchange earnings, strengthening the national economy.
I'm Aisha shehu
Talksocialtalka News
