Nigeria’s crude oil reserves have grown to 37 billion barrels, according to the NUPRC CCE.

According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country’s oil and condensate reserves were 37.046 billion barrels as of January 1, 2022.
This represents a 0.37 percent increase above the 36.910 billion barrels estimated on January 1, 2021.

Mr Gbenga Komolafe, the NUPRC’s Commission Chief Executive (CCE), stated this on Friday in Abuja at a stakeholder interaction with print and electronic media.

Similarly, according to Komolafe, the National Gas Reserves status as of January 1, 2022 was 208.62 trillion cubic feet (TCF), up 1.01 percent from 206.53 TCF as of January 1, 2021.

According to him, this research was based on 61 operating firms submitting their 2021 National Annual Report on Reserves in accordance with the Petroleum Industry Act (PIA) 2021.

According to the National oil and gas reserves position as of January 1, 2022, and in accordance with the terms of PIA 2021, operating exploration and production companies must submit an annual report of reserves to NUPRC.

The CCE, on the other hand, emphasized several aggressive efforts implemented by the commission since his appointment six months ago to boost crude oil and gas production.

He claimed it took advantage of current market realities such as the rise in crude oil prices to 106.25 dollars per barrel and gas supply difficulties caused by the Ukraine conflict.

He said the commission recognized the design of all-inclusive strategies to increase crude oil and gas reserves when speaking about the initiative to boost crude oil production (from 37 billion barrels and 208.62 TCF).

This, he explained, necessitated a thorough examination of all variables impeding efficient and successful exploration and production activities, as well as the identification of low-hanging fruit or opportunities.

“As a result, we’ve become more methodical and rapid in putting strategic plans and initiatives in place geared at growing our crude oil and gas reserves and production,” he said.

The CCE announced that it had launched a large drive to identify oil and gas wells that were producing below capacity, including inventories of shut-in wells and inventories to map the causes for shut-in and create strategies for speedy reopening.

Another campaign initiative, he said, is to use well and reservoir surveillance activities to identify badly performing wells and workover candidates so they can be fixed quickly.

He suggested that some stranded oil and gas resources be unlocked by embracing and implementing new technologies and better recovery procedures.

He said the crisis between Russia and Ukraine, as well as the resulting disruptions to the global gas demand-supply system, gave Nigeria with a unique opportunity to fill the gap.

He stated that this would be accomplished by implementing many natural gas development efforts.

“With the Federal Government declaring the years 2021– 2030 as the Decade of Gas, the commission is working to boost the country’s vast gas resources through improved gas exploration, development, and utilization plans.”

“These will result in increased gas reserves, increased gas production, the maturing of the domestic and export gas markets, and the eradication of gas flares.”

“To ensure compliance with Section 108 of the PIA and enhance supply to the rapidly increasing gas market, the Commission is now engaging all lessees on their Natural Gas Flare Elimination and Monetisation Plan.”

Furthermore, we encourage investors to take advantage of the significant gas fiscal incentives available, such as zero hydrocarbon tax, lower royalty rates, and tax consolidation provisions, to make Final Investment Decisions on their proposed upstream projects.

We are on target to raise our reserves volumes to 220TCF in less than 10 years and 250TCF thereafter, with a proven gas reserve base of 208.62TCF (as of 1st January 2022).

Currently, Nigeria produces roughly 8 billion cubic feet of gas per day, of which approximately 20% is delivered to the domestic market, 40% is exported to international markets, 30% is used for producer’s internal use, and the remainder is flared.

“The commission has issued the yearly Domestic Gas Delivery Obligation (DGDO) to all lessees to stimulate gas production development,” he said.

He went on to say that the commission is working on other steps to boost gas production and usage, such as requiring all gas producers to undertake required gas well deliverability tests in order to set operating limitations.

He believes that by doing so, the commission will be able to determine production potentials and guide the industry to its maximum capacity.

According to the initiative, it has been in constant contact with operators about the need to drill below the conventional oil window in order to target gas-rich zones for production and increase the country’s gas reserves.

It is also leading operators with saturated reservoirs to guarantee that their well locations drive optimal oil and gas resource development, according to him.

He said the Flare Gas Regulations 2018 and accompanying Guidelines were now being revised to include methane emissions capture in order to ensure the elimination of gas flaring/venting and the monetisation of gas resources in the country.

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