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 Nigeria oil fields jump to 246 on investor response to PIA – NUPRC

Nigeria oil fields jump to 246 on investor response to PIA – NUPRC

Nigeria’s oil industry is showing positive signs with the number of producing fields reaching 246, according to the Federal Government (FG).

This marks a 12 percent increase from 218 producing fields in 2019, data from the Nigerian Upstream Petroleum Regulatory Commission showed.

The NUPRC document, which focused on stability in the oil sector, read in part, “Since 1956, the Nigerian upstream oil and gas landscape has grown with the development and installation of several oil and gas facilities.

“With over 246 producing fields, 2,777 producing strings, 188 production stations/platforms, four gas terminals, five land terminals, 11 FSOs (Floating Storage and Offloading Units), 18 FPSOs (Floating Production Storage and Offloading), and several other facilities at various stages of development, Nigeria is poised to boost production and enhance energy security.”

Explaining the driving forces behind this sustained surge in exploration activities, Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), attributed it to the positive impact of Nigeria’s recently enacted Petroleum Industry Act (PIA).

“The PIA is positively impacting as it provides institutional governance, efficient administration, and attractive fiscal regimes while providing for host communities, thus creating a peaceful atmosphere for investment and operations.”

The rise in fields is complemented by an increase in active oil rigs. Figures released by the Organization of the Petroleum Exporting Countries (OPEC) show Nigeria’s oil rigs climbed from 15 in January to 16 in February.

An oil rig/platform is a large structure with facilities to extract and process petroleum and natural gas that lie in rock formations beneath the seabed.

Nigeria, as an oil/gas-rich country, drills crude oil daily from onshore and offshore sources for export.

It earns more than 80 per cent of its foreign exchange from oil; hence, the number of functional oil drilling rigs across the country is vital.

Meanwhile, in the latest NUPRC document obtained on Friday, the commission noted that given the prevailing security challenges across the country, deliberate protection of oil and gas assets was paramount.

It described oil assets as critical, not only for the country’s economy but also for the well-being of its citizens and sustainable development of the nation.

“Although the actual national production currently averages 1.33 million barrels of oil per day and 256,000 barrels of condensate per day, the national technical production potential currently stands at 2.26 million bpd, while the current OPEC quota is 1.5 million bpd.

“Closing the gap between the actual oil production and the technical potential presents a significant opportunity for Nigeria to unlock additional revenue streams, address the current foreign exchange gap and strengthen her economic resilience.

“Enhanced security for oil and gas infrastructure and transportation facilities is a fundamental component of achieving this goal,” the commission stated

It noted that by adopting an integrated approach that addresses infrastructure, transportation, and security challenges holistically, Nigeria would foster stability, sustainability and resilience within its energy sector.

“Such integrated strategy would recognise the interconnectedness of various aspects of the energy value chain and emphasise the need for collaboration among government agencies, security forces, industry stakeholders, and international partners to implement targeted strategies and initiatives.

“The various aspects include investment in new infrastructure projects, maintenance of existing assets, development and deployment of modern technologies, investments in pipelines, virtual pipelines, ports, railroads, and highways to facilitate the transportation of energy resources.

“It also includes implementing comprehensive security measures to safeguard energy infrastructure and assets from threats such as vandalism, theft, sabotage, and cyber-attacks. (Businessday.ng)

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