Nigeria now produces crude oil from over 246 fields across the country and operates 188 production stations/platforms, the Federal Government has stated.
Data obtained in Abuja on Friday from the Nigerian Upstream Petroleum Regulatory Commission, an agency of the Federal Government, indicated that Nigeria’s oil-producing fields had been on the rise since the first commercial oil discovery in the country by Shell Darcy at Oloibiri, Bayelsa State, in 1956.
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.”
Nigeria has been recording improvements in oil outputs and installations lately.
Recall that Sunday PUNCH reported on March 17, 2024, that the number of functional oil drilling rigs across the country increased marginally to 16 in February.
The report stated that this was based on data from the March 2024 Monthly Oil Market Report of the Organisation of Petroleum Exporting Countries.
Figures released by OPEC indicated that the country’s oil rigs increased from 15 in January to 16 in February, a development that industry operators described as significant for the production of crude.
OPEC data, according to Sunday PUNCH’s report, showed that the country operated an average of 13, 16 and 14 oil rigs in the second, third and fourth quarters of 2023, respectively.
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.
“The approach also requires the establishment of clear policy frameworks and regulatory mechanisms to support investment, promote competition, and ensure transparency and accountability within the energy sector,” the upstream regulator stated.
SOURCE: PUNCHNG
