With about 13 billion oil reserves in Nigeria’s deepwater and only two billion barrels so far explored, the Director, Department of Petroleum Resources (DPR), Mordecai Ladan has made a case for more attractive fiscal and regulatory regime in order to attract investment to the natural resources,
Represented by Deputy Director, Upstream, Mr. Enorese Amadasu at the ongoing Offshore Technology Conference in Houston, Texas, Ladan said there was the need to amend the policy that nobody brought third parties and investors who would bring floating production, storage and offloading vessels (FPSO).
To unlock the huge potentials in the deepwater, the DPR chief said the Federal Government will create more attractive fiscal and regulatory regime, incentives based on reserves replacement, ensure accelerated lease renewals and encourage deep play exploration and reserves maturation.
Others measures include creating unique fiscal policy for unique emerging plays, responsive legislative environments and for gas commercialization, among others.
He confirmed that oil production from Nigeria’s deepwater province is currently at 850,000 barrels per day, representing 40.47 per cent of the total production of 2.1 million barrels per day with cumulative deepwater production as at December 2018 put at 3.2 billion barrels.
Deepwater oil blocks are those located in areas of water depth beyond 200 metres and extending up to 200 nautical miles seaward from the coasts of Nigeria.
Specifically,, Nigeria has 83 deepwater oil and gas blocks out of which 30 has been awarded and eight blocks out of the 30, are oil mining leases (OMLs) that have begun production. There, we have 53 open blocks to be awarded.
Ladan said: “Successful progress has been made in growing Nigeria reserves and production from the development of deep offshore hydrocarbons since 2003.
“Technology has been the key enabler in converting resources into economical reserves. There abound ample opportunities to realize accelerated revenues and sustained investment in maturation of more than 40 billion barrels of oil equivalent resources presently untapped in Nigeria deep offshore area.
“DPR as a regulator, working with other stakeholders including the Nigerian National Petroleum Corporation (NNPC), decided to go into deep water, when the inland and the offshore was already saturated.
” The only way to do that was to come up with Production Sharing Contract (PSC) agreement, and that was how 83 blocks were mapped in Nigeria deep water and 30 of the blocks was awarded.
” Eight of the blocks were awarded in 1993, eight in 2000 and other 14 in 2015.”
Source: World Stage