Nigeria

Tuesday, November 13, 2007

Some leading operators of Nigeria’s oil industry have expressed doubts over the country’s ability to achieve the 40 billion barrel reserves target by year 2010. The Nigerian authorities had in 2000 set the year 2010 as a target to reach the 40 billion barrel mark and 3 million barrels of daily production. As a result, new initiatives and funding arrangements were introduced by the past government. But today, with rising cost of production, poor level of funding and insecurity in the Niger Delta, experts say government’s expectation may not be met.

According to the Managing Director and Chairman of Shell Petroleum Development Company in Nigeria, Basil Omiyi, Nigeria’s crude oil reserve is declining and urgent steps are needed by government. As at last year, reserves have risen to 35 billion barrels from 25 billion in 1999. Omiyi who is also the Chairman, Oil Producers Trade Sector  (OPTS) said Nigeria, with 10% of global oil reserves and nearly 8% of global gas reserves, has a big role  to play in addressing energy demand in Africa and the world. He said government should encourage operators to do more fundamental geology on other basins such as Chad, Anambra, and Sokoto as potentials in these basins still remained untapped.

"These basins are very highly productive areas and government needs to put in place attractive fiscal incentives to encourage investors in using technology  that could explore for crude in the areas.”

But the President of the National Association of Petroleum Explorationists, (NAPE), Dr. Emmanuel Enu said the enthusiasm that characterized deepwater exploration some 14 years ago has dwindled. This, according to him was as a result of the little or no exploration success recorded by some operators in the outer thrust play. The zone has turned up several dry wells for different prospectors. This has placed a deep question mark on the prospectivity of Nigeria’s outer thrust deepwater belt. The result as would be expected is that some deepwater operators are relinquishing their blocks and vacating Nigeria’s deepwater in preference for other regions.

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