Abuja, Oct 3, 2016 – The Nigerian National Petroleum Corporation (NNPC) has expressed readiness to partner with stakeholders in the Oil and Gas Industry to grow the nation’s fast depleting reserves in order to increase productivity in the petroleum sector.
Group Managing Director of the NNPC, Dr. Maikanti Baru made this commitment when the Nigerian Association of Petroleum Explorationists (NAPE) hosted him to a dinner in Abuja at the weekend.
Dr. Baru stated that the 2016 national average oil production of 1.9 million barrels is low partly due to oil infrastructure vandalism, stressing the need for stakeholders to share data and use common available resources to reduce cost of operations in the area of rig-sharing, vessel sharing and synergy in projects development adding that this has become even expedient in this era of low oil prices and security challenges.
“Our national gas demand forecast to year 2020 (domestic plus export) indicates a rapid growth to 15bscfd meaning current reserves level can only sustain that production for 35 years if we do not increase the 2bscfd gas reserves base which require 3tcf to replace production yearly,” Dr. Baru also noted.
The GMD tasks NAPE and other stakeholders to focus on increasing the nation’s oil and gas reserve base to match national aspirations to increase oil production to 4 million barrels per day and meet gas demand of 15bscfd by 2020 required for industrialization consumption.
He noted that less than 3 percent of all wells drilled in the Niger Delta Basin both onshore and swamp are deeper than 15,000 feet adding that a greater number of these wells have not gone beyond the 10,000 ft as a high pressure regimes seems to be a limiting factor.
On frontier exploration, the GMD said NNPC is progressing exploration efforts in Chad Basin, Benue trough and the other frontier basins so as to shore up the reserve base of the country.
According to him, “Some of our earlier drilled non-commercial holes could be turned around if we deploy requisite technologies. We need to change our perspective of risk as technology is advancing.”
Earlier, the NAPE President, Mr. Nosa Omorodion said his association is ready to support NNPC in its drive to grow reserves towards increased productivity in all the frontier basins.
