Nigeria’s Oil Reserves Decline by 50 Billion Barrels as FG Offers to Sell 31 New Blocks

• Nigeria’s oil reserves have declined by 50 billion barrels in the last 14 years due to the drought of exploration
• The Nigerian Upstream Petroleum Regulatory Authority (NUPRC) said the country’s oil reserves plummeted from 38 billion barrels to 37.5 billion in 2023
• This development also led to job losses by geographical and geological service firms

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian Upstream Petroleum Regulatory Authority (NUPRC) has said Nigeria’s oil reserves declined by 50 billion barrels in 14 years.

The NUPRC said oil reserves declined from 38 billion barrels to 37.50 billion between 2008 and 2023.

NUPRC reveals reasons for the decline

The authority blamed the decline on the drought of exploration activities caused by a lack of investment by exploration and production firms.

It stated that oil firms’ lack of investment could be caused by the delay in passing the Petroleum Industry Bill (PIB) and other factors such as COVID-19.

Read also

Dangote Cement moves to borrow money from Nigerians, promises to repay with interest

The development also led to job losses by geographical and geological service firms.

The NUPRC disclosed this in a recent publication, stating that exploration activities picked up gradually from the fourth quarter of 2021 due to the passage of the Petroleum Industry Act (PIA).

However, it noted that the decline was said to have returned as more companies divested from the country.

NUPRC recommends ways to grow reserves

Punch reports that the NUPRC recommended that exploration and production companies be encouraged to pursue aggressive exploration activities, such as drilling a well yearly, to grow reserves.

The agency also recommended acquiring seismic data with a minimum record length of two-way time (TWT) depth to ensure exploration of deeper prospects beyond 15,000 feet.

FG unveils 31 oil blocks for sale

This comes as NUPRC asked foreign investors to take advantage of the opportunity of the ongoing licensing round in Nigeria to benefit from and contribute to Nigeria’s fast-growing oil and gas industry.

Read also

NNPC explains reasons for delay in completing Port Harcourt amid high petrol imports

NUPRC's chief executive, Gbenga Komolafe, disclosed this during the Africa Oil Week Conference in Cape Town, South Africa. 

He revealed that the licensing round features over 31 oil blocks, supported by a robust regulatory framework under the Petroleum Industry Act (PIA).

Komolafe said vital natural resources, a competitive regulatory framework, and strategic incentives had created a favourable environment for investors wishing to participate in Nigeria’s oil and gas sector.

Nigeria’s untapped oil resources

He assured investors of a new dispensation of certainty in Nigeria’s oil and gas industry, stressing that the country remains committed to ensuring transparency, social inclusion, and sustainable development.

The NUPRC boss said the 2024 licensing round offers investors a significant opportunity to contribute to and benefit from Nigeria's long-term energy growth.

According to Komolafe, Nigeria boasts vast untapped potential, including 209.26 trillion cubic feet of natural gas reserves, 37.5 billion barrels of crude oil reserves, and an oil production capacity of 2.4 million barrels daily.

Read also

Dangote seeks to borrow money to boost refinery production after deal with marketers

Nigeria loses its spot as the country with largest oil reserves

Legit.ng earlier reported that the Nigerian authorities recently announced an increase in oil production from 1.28 million barrels per day to 1.7 million, making Africa’s largest oil producer.

While Nigeria’s oil production has increased significantly over the years as it battles to contain oil theft and low output, it has lost its position as the country with the largest oil reserves in Africa.

Crude oil production is critical to the economic well-being of Nigeria and other oil-producing countries in Africa.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng