As the nation’s oil and gas industry awaits the passage of the Petroleum Industry Bill (PIB), there has been a decline in crude oil exploration as only 232 barrels of oil with condensates were added to the reserves in 2017.
International Oil Companies (IOCs) have consistently lamented that the continued delay in passing the PIB bill into law is creating uncertainties which delay the take-off of fresh projects worth several billions of dollars that would grow industry capacity and reserves. For instance, Shell Petroleum Development Company (SPDC) had last year said it has put on hold investment decisions on two key offshore oil and gas projects that would cost about $30 billion until the new petroleum law is approved.
According to a Department of Petroleum Resources (DPR) report, the nation’s oil reserves grew to 36,971.91 billion barrels in 2017 against 36,739.18 barrels recorded in 2016, a difference of 232 barrels including condensates added in a year. The Minister of State for Petroleum Resources, Ibe Kachikwu, had also last year lamented the loss of over $15 billion annual investment due to lack of the PIB.
Source: Daily Trust