FG to boost oil production by 58,000bpd from awarded marginal fields

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says the awarded marginal fields will increase oil production by about 58,000 barrels per day (bpd).

Addressing stakeholders at a recent event in Lagos, Gbenga Komolafe, chief executive officer (CEO) of NUPRC, said the oil fields would also increase the country’s gas output by 87 million standard cubic feet per day.

In June 2022, the commission completed the 2020 marginal field bid round exercise, generating about N200 billion as well as $7 million in revenue for the federal government.

Komolafe said following the existing discoveries in the awarded fields, an early field development plan would be pursued by the awardees which would result in increased oil and gas production.

“We have also completed the 2020 marginal field bid round and issued 50 petroleum prospecting licenses to deserving awardees. It is expected that with the existing discoveries in the awarded fields, an early field development plan would be pursued by the awardees leading to incremental oil and gas production,” he said.

Komolafe said the commission is facilitating timely approvals for expedited re-entry and early production. 

“The estimated incremental production from the awarded fields is approximately 58,000bpd and 87mmscf/d,” he added.

“In the short/medium term, we expect an estimated incremental volume of 461,000bpd and 565mmscf/d from new wells and well re-entry. In the long term, we expect an estimated incremental volume of 162,000bpd and 868mmscf/d from FDPs, which have been approved and are at various stages of execution.”

Th NUPRC boss further said the implementation of host community provisions under section 235 of the Petroleum Industry Act 2021 saddled the commission with the responsibility of ensuring conducive and peaceful relationships among stakeholders within the host communities.

He said this would be done through the implementation of the host communities development trust.

“The commission, in collaboration with the relevant stakeholders, has developed templates and gazetted regulations, which include that of the host community development trust [HCDT],” he said.

“The essence of the HCDT is to integrate oil-bearing communities into the value chain and effectively cater for the development needs of impacted communities, thus positively curbing restiveness in such communities and offering an enabling environment for operators to thrive.

“This is expected to guarantee seamless operation, boost investor confidence, and provide an enabling environment for sustainable development of the country’s hydrocarbon resources.”

Komolafe noted that the commission has approved over 60 HCDT, saying it was a milestone in the implementation of the PIA, 2021.

Source: https://www.thecable.ng/