The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed Nigeria’s aim to attract around $17.64 billion in investments, stemming from the approval of 51 Field Development Plans (FDPs) between 2022 and 2023.
This objective comes amidst concerns raised by the Minister of State for Petroleum Resources, Heineken Lokpobiri, regarding the significant decline in investments plaguing the country’s oil and gas sector. Speaking at the ongoing Nigeria International Energy Summit (NIES) in Abuja, Lokpobiri emphasized ongoing governmental efforts to foster a competitive fiscal and regulatory framework conducive to attracting investments.
Gbenga Komolafe, the chief executive of the commission, revealed that the approved FDPs are projected to yield an estimated cumulative oil recovery of 2.12 billion barrels and gas recovery of 13.13 trillion cubic feet over the next five years. Additionally, approximately $2.5 billion is allocated for drilling 175 wells during this period, while $2.68 billion is expected to be invested in 842 well workovers and interventions, enhancing average oil production.
Furthermore, Komolafe highlighted Nigeria’s significant increase in rig count, growing by 275% from eight rigs in 2021 to an average of 30 in the past year. This surge in activity has led to early first oil production in various fields, including Ikike, Efe, Utapate, Akubo, Oyo, among others, showcasing accelerated progress through Field Development Plans.
The regulatory commission also emphasized its commitment to environmental sustainability, spearheading initiatives such as the flare commercialization program (NGFCP) and collaborating with stakeholders to drive innovation and technology adoption across the industry. Additionally, the establishment of a College of Awardees aims to facilitate collaboration among stakeholders for optimal delivery of flare commercialization projects.
Looking ahead, Komolafe outlined the commission’s efforts to create more investment opportunities through licensing rounds for deepwater acreages and upcoming closed bids in 2024, with the goal of bolstering national reserves, production, and revenue. The regulatory framework prioritizes fairness, transparency, and competitiveness in licensing processes to attract investors across various sectors within the oil and gas industry.
In his address, Lokpobiri underscored the strategic role of national oil companies (NOCs) in driving the development of the oil and gas industry, particularly amidst the global campaign for energy transition. He emphasized the need for collaboration among NOCs to navigate this transition effectively and ensure sustainable development.
Representing the African Export-Import Bank (Afreximbank), Benedict Oramah lamented the continent’s energy deficit despite its abundant resources. He stressed the importance of a just transition approach to energy transition, ensuring universal access to clean and affordable energy while prioritizing Africa’s perspective.
Oramah highlighted Afreximbank’s substantial support to the sector, exceeding $30 billion, with Nigeria being a major beneficiary. He announced the establishment of the Africa Energy Bank, under a multilateral financial institution agreement, aimed at providing sustainable financing for the continent’s energy sector.
The Africa Energy Bank, structured to ensure African ownership and control, seeks to play a leadership role in shaping the continent’s energy landscape through strategic partnerships with African and international financial institutions and investors. Oramah emphasized the need for support from member states to adequately capitalize the bank and achieve energy self-sufficiency on the continent.