The Nigerian government is resuscitating oil wells that were previously shut down with the aim of producing around 2.1 million barrels of crude oil per day, worth an estimated N2.4tn monthly, from various drilling facilities in the Niger Delta.
According to data obtained from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), about 900,000 barrels of oil per day could be produced from “quick interventions” on the shut-in wells, while the medium and long-term initiatives could add 1.2 million barrels of oil daily.
This implies that about 2.1 million barrels of oil per day, or 63 million barrels monthly, would be produced from the facilities.
The CEO of NUPRC, Gbenga Komolafe, explained that the commission was working with operators to identify candidate wells and appropriate interventions that would lead to increased production.
He further stated that the commission had inaugurated a committee in June 2022 to conduct an industry-wide study on the reactivation of shut-in strings, and the committee had submitted its report, which had recommendations categorized into quick wins, medium, and long-term initiatives that would enhance national oil and gas production volumes.
The NUPRC boss added that the commission was committed to increasing Nigeria’s oil and gas reserves and production, developing a transparent approach to hydrocarbon accounting, and attaining operational efficiency and effectiveness in industry operations, as outlined in Section 6 of the Petroleum Industry Act, 2021.
The commission is committed to facilitating peace and harmony in the host communities to guarantee a conducive operating environment for investors, positively impacting operating costs and attracting more investment opportunities.
Komolafe further noted that the NUPRC had issued an oil licensing round guideline and published a licensing round plan for a total of seven open oil blocs, including 300-DO, 301-DO, 302-DO, 303-DO, 304-DO, 305-DO, and 306-DO.
The commission is currently evaluating the Expression of Interest received from prospective investors, and the exercise is expected to be a huge success for Nigeria and a big step towards growing the nation’s oil and gas reserves.