Nigeria’s national oil company, the Nigerian National Petroleum Company Limited (NNPC), is eyeing several oil blocks and fields in the prolific Niger Delta basin to boost the country’s oil production. The Executive Vice President, Upstream at NNPC, Mr. Adokiye Tombomieye, revealed this during a presentation at the Nigeria Oil and Gas Energy Week in Abuja. The target is to ramp up national oil production to between 1.7 million and 1.8 million barrels per day (bpd) by the end of 2024.
Tombomieye highlighted various measures that will contribute to achieving these production targets. These include focusing on asset integrity, production ramp-up, well interventions, new drilling activities, alternative crude oil evacuation methods, and improving security architecture. NNPC has already resumed crude oil production in previously challenged areas such as Oil Mining Leases (OMLs) 29, 18, and 24. They anticipate reaching a production level of around 80,000 bpd in collaboration with their joint venture (JV) partners by the third quarter of 2024.
Significant progress has been made in specific fields and blocks. For instance, NNPC achieved the first oil-to-tank milestone in the NNPC E&P (formerly NPDC) OML 13 field, producing 25,000 bpd. They expect to fully monetize this field by the end of the third quarter of 2023. Other developments, such as the Obodo field in OML 150 PSC and the development in OMLs 71 and 72, are expected to add 20,000-30,000 bpd each to national production by late 2023. In the deepwater space, initiatives like the Aboe turn-around maintenance and opening up injector wells in OML 130 are set to contribute an additional 10,000-20,000 bpd by the third quarter of 2023.
Tombomieye also highlighted future projects with potential for substantial production increases. These include the Bonga North field, which is estimated to deliver 120,000 bpd, and the Bonga Southwest Aparo field with a development potential of 150,000 bpd. Other projects by TotalEnergies, Chevron, and ExxonMobil were mentioned, all contributing to increased production capacities.
While Tombomieye emphasized the importance of a conducive investment climate and the need for clear regulations to mitigate investment risks, multinational oil firms and Nigerian independent producers expressed concerns about the Finance Act 2022. They argue that the Act diminishes the benefits brought by the Petroleum Industry Act (PIA) 2021. The Oil Producers Trade Section (OPTS) and Independent Petroleum Producers Group (IPPG) submitted a petition seeking clarifications on specific provisions of the Act.
The IPPG called on the Nigerian government to prioritize key areas to attract investments and enhance competition in the hydrocarbon industry. They stressed the need for a strong governance framework for PIA implementation, increased security in the Niger Delta region, and the establishment of value-creating midstream and downstream sectors. The IPPG also advocated for an independent single regulator to enhance competitiveness and expedite the conclusion of ongoing divestments by international oil companies.
The NOG Energy Week provided a platform for industry stakeholders to discuss policies, investor confidence, and pragmatic solutions for the Nigerian energy sector. The coming months will be crucial in shaping the future of Nigeria’s oil and gas industry, with a focus on securing a reliable and sustainable energy future for the nation. The government’s actions within its first 40 days in office were commended, and expectations are high for continued progress and reforms in the sector.
