Nigeria targets additional 800,000 barrels of daily oil production from foreign companies

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By Obafemi Oredein

Special for Dow Jones Newswires


IBADAN, Nigeria – Nigeria plans to increase daily oil production by adding 800,000 barrels from projects by some international oil companies which had stalled due to funding and other reasons, the Nigerian Petroleum Regulatory Commission said in a statement. upstream.

Gbenga Komolafe, managing director of NUPRC, said on Thursday that the government was counting on increased production from projects such as TotalEnergies SE’s Preowei, Shell PLC’s Bonga South West Aparo and Bonga North, as well as other executed projects. by other companies.

“Some of these projects, including the Preowei Project, the Bonga South West Aparo Project, the Bonga North Project and a host of others, when completed, all have the combined capacity to add over 800,000 bopd (barrels of oil per day) to Nigeria’s production figures,” Komolafe said in a statement posted on the NUPRC website.

He said Preowei is a deepwater hydrocarbon deposit located north of the Egina field in Oil Mining Lease 130, offshore Nigeria, with over 150 million barrels of oil and gas equivalent, which is expected to pumping around 50,000 bopd at its peak.

A final investment decision on Preowei was set for the fourth quarter of 2020 but stalled after it was suspended that year by TotalEnergies due to Covid-19 constraints, concerns over new fiscal arrangements in the Nigerian oil sector , as well as a fall in oil prices.

Mr Komolafe said Shell’s Bonga South West floating production storage and offloading facility, with a pumping capacity of 150,000 barrels per day, is another project the government is relying on to increase production. daily oil production of 800,000 barrels.

Bonga South West is expected to add around one billion barrels to Nigeria’s oil reserves. However, in February, the contract for the development of the project’s floating production, storage and offloading unit was delayed and the bidding process was suspended until 2024, Mr Komolafe said. .

Nigeria, Africa’s largest oil exporter, has underperformed in oil production and failed to meet its production quota with the Organization of the Petroleum Exporting Countries for several consecutive months. Nigeria’s OPEC quota is around 1.7 million barrels per day.

Nigeria is currently producing about 1.4 million barrels per day, down from its usual output of 2.2 million.

Mr. Komolafe said that with the NUPRC now empowered by the Petroleum Industry Act, the government could move development projects forward. The law was signed into law by President Muhammadu Buhari in August with the aim of overhauling the country’s oil and gas industry.


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