A Review of the Nigerian Energy Industry

Nigeria’s marginal fields’ reserve hits 302.62mb

Diezani-Alison-Madueke31 July 2013, Lagos – Nigeria’s marginal fields’ reserve has increased from 141.01million barrels, mb, in 2004 to 302.62mb this year, the Department of Petroleum Resources, DPR, has affirmed.

The Director of DPR, George Osahon, who spoke at the Society of Petroleum Engineers’ 37th Nigerian Annual International Conference and Exhibition, NAICE, in Lagos Tuesday, also put the crude oil production from the nation’s marginal field at 60,000 barrels per day and gas production at 15 million standard cubic feet per day.
Osahon, who was represented by Head, Upstream Division, Sam Obiorah, however lamented the little contribution of 2.1 per cent of the marginal fields’ contribution to the country’s total crude oil production.

According to him, out of the 24 marginal fields awarded by the Federal Government in 2003, only nine are into full production with some others at various stages of development.
He noted that the marginal field programme has shown a lot of promise and would be expected to pay a bigger role in the nearest future.

Osahon said that the government would ensure that the next marginal award would have clusters of contiguous fields to aid materiality.

According to him, “The marginal field programme may not have evolved as intended, but it has made its mark on the industry landscape.  Suitable enablers will be introduced in future marginal fields bid round”.

However, the Managing Director/Country Chair of Shell Companies in Nigeria, Mutiu Sunmonu, lamented the spate of vandalism and crude oil theft in the Niger Delta region, describing the scenerio as a ‘crisis situation’ to the national economy.

Sunmonu, who was represented by the Managing Director, Shell Nigeria Exploration and Production Company, SNEPCO, Chike Onyejekwe, said the Federal Government’s aspiration of growing reserve to 40 billion barrels and earn much more revenue from the sector by 2020, may be in jeopardy, unless it tackles the menace of oil theft head long.

“The impact of the activities of crude oil thieves and illegal refineries on the environment in the Niger Delta and the Nigerian economy is now a crisis situation. At some point this year, over 60,000 barrels of crude was being stolen from Shell lines daily,” he stated.

The Managing Director, Chevron Nigeria Limited, Andrew Fawthrope, who also spoke at the event, expressed hope of bright future for the nation’s petroleum sector.

Fawthrope said for Africa to meet up with the growing global trend, it is imperative for the continent, particularly Nigeria, to initiate policies that would attract and develop own funding and technology capabilities.

“Oil and gas will continue to be the dominant fuel in the global primary energy mix. Africa accounts for 11 per cent (9.4 million barrels per day, according to W. Mc Kenzie 2013 report) of the current global production.

“The world energy production centers and regulatory environment is changing. It is important for Africa’s policies to update to attract and develop its own funding and technology capabilities. Nigeria has responded to many challenges and will rise to resolve a bright future,” he stated.

– The Guardian

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