The federal government has declared that around $22.82 billion will be invested in 1,068 oil and gas projects approved between 2022 and 2023.
These initiatives, which span the country, represent a watershed moment for the industry, promising significant economic advantages and increased production capacities.
This declaration came during a panel session at the 7th Nigeria International Energy Summit in Abuja, where the focus was on Nigeria’s efforts to maximise its oil production potential.
Gbenga Komolafe, the Chief Executive Officer of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), emphasised the country’s technological capacity to produce 2.26 million barrels of crude oil per day.
Komolafe provided insights into Nigeria’s approach to align with the Organisation of Petroleum Exporting Countries’ (OPEC) oil production quota, highlighting the country’s continued efforts and substantial success in the oil sector.
A total of 51 Field Development Plans (were) approved between 2022 and 2023, with an expected investment inflow of $17.64 billion and cumulative oil and gas recovery of 2.12 billion barrels and 13.13 trillion cubic feet, respectively, over the next five years.
“A total of circa $2.5 billion investment in 175 wells drilling in the year 2022 – 2023. A total of $2.68 billion investment in 842 well workovers and other well intervention activities in the year 2022 – 2023 resulting in increased average oil production.
“275% growth in rig count from just eight in 2021 to average of 30 in the past one year. Early first oil achieved in recently streamed fields through accelerated FDPs.
“Some of the fields include: Ikike (Total), Efe field (Newcross), Utapate, (NEPL), Akubo Field (SEEPCo), Oyo (General Hydrocarbon) and several others streamed under Extended Well Tests including Ethiope, Omefejo, Ofa, Olure, Ibom, Apani, Kalaekule, etc.”
Komolafe highlighted the present discrepancy between Nigeria’s actual oil production, which averages 1.33 million barrels per day, and its technical potential. He saw this as a good opportunity for investors to capitalise on, with the potential to boost the nation’s revenue, close the foreign exchange shortfall, and strengthen economic resilience.
“Closing the gap between the actual oil production and the technical potential presents a window of investment opportunities for investors and a significant opportunity for Nigeria to unlock additional revenue streams, address the current foreign exchange gap and strengthen her economic resilience. So, there is opportunity in every disability.”
Komolafe also stated that the commission is stepping up efforts to work with international oil companies to accelerate the maturation and development of some high-volume deep offshore properties.
The Nigerian oil industry, which is essential to the country’s economic structure, is currently facing several issues. These challenges have provoked broad debate and require strong action on both the domestic and international fronts.
Despite these challenges, the federal government is aggressively developing ways to address them and move the industry ahead.
In anticipation of a significantly enhanced oil industry, the Federal Government intends to increase Petroleum Profit Tax (PPT) receipts by 214% in 2024.
Data from the Federal Inland Revenue Service (FIRS) reflect the government’s ambitious intention to collect N9.96 trillion from PPT. This figure reflects a massive 214% rise over the N3.17 trillion earned in 2023, as well as an 89% increase over the initial prediction of N5.26 trillion for the same time.
To meet this ambitious revenue projection, the federal government established an oil price benchmark of $77.96 per barrel for 2024, as well as a production forecast of 1.78 million barrels per day (mb/d).
Source: Allnews.ng