The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the identification of new oil fields capable of producing 681,000 barrels of crude oil per day and 1.52 billion standard cubic feet of gas daily.
These new discoveries are expected to aid in the production of oil and gas in Nigeria going forward.
The CEO of NUPRC, Gbenga Komolafe, stated that incremental volumes of crude oil and gas are expected from new wells and well re-entry.
Investors King understands that the 2020 Marginal Field Bid Round has also been completed, with 50 Petroleum Prospecting Licenses awarded to deserving awardees.
Komolafe explained that the commission is facilitating timely approvals for expedited re-entry and early production, with an estimated incremental production from the awarded fields of approximately 58,000 barrels per day and 87 million standard cubic feet per day.
“In the short/medium term, we expect an estimated incremental volume of 461,000 barrels per day and 565 million standard cubic feet per day from new wells and well re-entry; In the long term, we expect an estimated incremental volume of 162,000 barrels per day and 868 million standard cubic feet per day from Field Development Plans, which have been approved and are at various stages of execution,” he said.
The commission is also working to implement Host Community Provisions under Section 235 of the Petroleum Industry Act 2021, which saddles it with the responsibility of ensuring conducive and peaceful relationships among stakeholders within the host communities. This will 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. The essence of the HCDT is to integrate oil-bearing communities into the value chain and effectively cater to the development needs of impacted communities, thus positively curbing restiveness in such communities and offering an enabling environment for operators to thrive,” he said.
The implementation of these new oil fields and the Host Community Provisions is expected to guarantee seamless operation, boost investor confidence, and provide an enabling environment for sustainable development of Nigeria’s hydrocarbon resources.
