NMDPRA Pledges To Grow Nigeria’s Gas Industry

Mohammed Shosanya | iNDEPENDENT

 The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has promised to create enabling environment for the growth of the nation’s gas industry.

Engr Farouk Ahmed, the Authority Chief Executive (ACE),who disclosed this at a recent stakeholders’ engagement on gas utilisation in Nigeria, said that the 12 regulations recently gazetted will unlock the golden opportunities and signpost the pathway to energy security.

He said policy frameworks such as the National Gas Expansion Programme (NGEP), the Decade of Gas Programme (DOGP) and the establishment of the Midstream and Downstream Gas Infrastructure Fund by the Authority to catalyse gas investments are yielding significant results.

He implored collaborations and interventions amongst stakeholders that are needed to improve domestic gas utilisation in the country.

He explained that the engagement seeks to encourage large consumers of petroleum products to not only operate within the regulatory space, but also to become aware of the comparative advantages between the different fuels particularly gas which has been designated as Nigeria’s transition fuel.

Kalu Ukoha, the Executive Director, Distribution System, Storage and Retailing Infrastructure (DSSRI),while speaking, said some of the invited institutions have been identified as operating outside the regulatory oversight which is not in consonant with the Petroleum Industry Act (2021).

“This engagement sets the objective to enlighten this end-user category on the need to urgently obtain the requisite petroleum storage license and to engender the transition from white products to gas at the last mile.

“The Authority’s twelve gazetted regulations define the licensing regimes, procedures and standards for handling petroleum products which when breached pose increased risks. In addition, gas as the transition fuel represents a cleaner and more cost-effective energy source,” he said.

He also hinted that the Authority encourages operators and businesses to take advantage of the evolving opportunities in the gas value chain for sustainable business growth by positioning their energy needs to embrace gas derivatives such as Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Autogas, propane and butane to hedge against future global uncertainties to diesel supply.

He advocated the need for the support and collaboration of operators and businesses to achieve a safer and cheaper energy operating environment, “the Authority accordingly appeals to all petroleum handlers to fully comply with the provisions of the PIA and NMDPRA regulations and thereby avoiding strong regulatory enforcement which may adversely impact on business operations. The Authority’s statutory mandate remains to enable industry growth.”

GlobalData report has predicted a decrease in Africa’s annual crude oil and condensate by a Compound Annual Growth Rate, CAGR of 8.78 per cent to reach 2.86 million barrels per day, mmbpd.

GlobalData’s Oil & Gas, Upstream Fields Database listed 10 largest crude oil fields in Africa by production in 2022 to buttress its position.

In Nigeria, it named the OML 49, 90, and 95, located in the Gulf of Guinea, Nigeria.

This crude oil field is owned by Chevron (40.00%), NNPC (60.00%) and operated by Chevron Nigeria.

The field produced 0.14mmbpd in 2022 and recovered 90.26 per cent of its total recoverable crude oil and condensate reserves, with peak production in 1999.

The report said, the peak production was approximately at 0.38mmbpd of crude oil and condensate. Based on GlobalData estimates, production will continue until the field reaches its economic limit in 2049.

It said the field currently accounts for approximately 2.29 per cent of the total Africa daily crude oil and condensate output and it is expected to recover 543.35mmbbl of crude oil and condensate.

It also named OML 104, 67, 68, 70, located in Gulf of Guinea, Nigeria, adding that this crude oil field is owned by Exxon Mobil (40.00%), NNPC (60.00%) and operated by Mobil Producing Nigeria.

According to the report, the field produced 0.14mmbpd in 2022 and recovered 97.68 per cent of its total recoverable crude oil and condensate reserves, with peak production in 1998.

It said the peak production was approximately at 0.77mmbpd of crude oil and condensate. Based on GlobalData estimates, production will continue until the field reaches its economic limit in 2029.

It also said the field currently accounts for approximately 2.29 per cent of the total Africa daily crude oil and condensate output and it is expected to recover 157.34mmbbl of crude oil and condensate.

Agbami is located in Gulf of Guinea, Nigeria. This crude oil field is owned by Africa Oil (6.25%), Banco BTG Pactual (6.25%), Chevron (67.30%), Equinor (20.20%) and operated by Star Deep Water Petroleum. The field produced 0.1mmbpd in 2022 and recovered 88.79 per cent of its total recoverable crude oil and condensate reserves, with peak production in 2011,it said.

The report added that the peak production was approximately at 0.24mmbpd of crude oil and condensate. Based on GlobalData estimates, production will continue until the field reaches its economic limit in 2031. The field currently accounts for approximately 1.64 per cent of the total Africa daily crude oil and condensate output and it is expected to recover 133.07mmbbl of crude oil and condensate.

Others are, Hassi Messaoud is located in Ouargla, Algeria. This crude oil field is owned by Sonatrach (100.00%) and operated by Sonatrach. The field produced 0.4mmbpd in 2022 and recovered 82.28 per cent of its total recoverable crude oil and condensate reserves, with peak production in 1977.

It said: “There is also El-Sharara is located in Wadi Al-Hayaa, Libya. This crude oil field is owned by National Oil (50.00%), OMV (15.00%), Repsol (20.00%), TotalEnergies (15.00%) and operated by Akakus Oil Operations. The field produced 0.24mmbpd in 2022 and recovered 60.98 per cent of its total recoverable crude oil and condensate reserves, with peak production in 2022. The peak production was approximately at 0.24mmbpd of crude oil and condensate.

Based on GlobalData estimates, production will continue until the field reaches its economic limit in 2060. The field currently accounts for approximately 3.93 per cent of the total Africa daily crude oil and condensate output and it is expected to recover 921.02mmbbl of crude oil and condensate.

“Equally, Waha Concession Fields is located in Al Wahat, Libya. This crude oil field is owned by ConocoPhillips (20.41%), National Oil (59.18%), TotalEnergies (20.41%) and operated by Waha Oil Co.

The field produced 0.22mmbpd in 2022 and recovered 87.35 per of its total recoverable crude oil and condensate reserves, with peak production in 1970. The peak production was approximately at 0.95mmbpd of crude oil and condensate. Based on GlobalData estimates, production will continue until the field reaches its economic limit in 2057.

“The Kaombo Complex is located in South Atlantic Ocean, Angola. This crude oil field is owned by China Petrochemical (11.00%), Exxon Mobil (15.00%), Galp Energia SGPS (5.00%), New Bright International Development (6.30%), Sonangol (32.70%), TotalEnergies (30.00%) and operated by Total E&P Angola Block 32. The field produced 0.21mmbpd in 2022 and recovered 45.88 per cent of its total recoverable crude oil and condensate reserves, with peak production in 2022. The peak production was approximately at 0.21mmbpd of crude oil and condensate. Based on GlobalData estimates, production will continue until the field reaches its economic limit in 2036.

“In addition Block 0 (Area A and B) is located in South Atlantic Ocean, Angola. This crude oil field is owned by BP (4.90%), Chevron (39.20%), Eni (4.90%), Sonangol (41.00%), TotalEnergies (10.00%) and operated by Cabinda Gulf Oil Company CABGOC. The field produced 0.14mmbpd in 2022 and recovered 97.02% of its total recoverable crude oil and condensate reserves, with peak production in 1999.

“The peak production was approximately at 0.46mmbpd of crude oil and condensate. Based on GlobalData estimates, production will continue until the field reaches its economic limit in 2025.

“The field currently accounts for approximately 2.29% of the total Africa daily crude oil and condensate output and it is expected to recover 108.1mmbbl of crude oil and condensate.

“Again, the Dalia is located in South Atlantic Ocean, Angola. This crude oil field is owned by BP (7.92%), Eni (7.92%), Equinor (22.16%), Exxon Mobil (19.00%), Sonangol (5.00%), TotalEnergies (38.00%) and operated by Total E&P Angola.

“The field produced 0.12mmbpd in 2022 and recovered 71.2% of its total recoverable crude oil and condensate reserves, with peak production in 2010. The peak production was approximately at 0.24mmbpd of crude oil and condensate. Based on GlobalData estimates, production will continue until the field reaches its economic limit in 2046.

“The CLOV Complex is located in South Atlantic Ocean, Angola. This crude oil field is owned by BP (7.92%), Eni (7.92%), Equinor (22.16%), Exxon Mobil (19.00%), Sonangol (5.00%), TotalEnergies (38.00%) and operated by Total E&P Angola. The field produced 0.1mmbpd in 2022 and recovered 62.29 per cent of its total recoverable crude oil and condensate reserves, with peak production in 2015”

It said the peak production was approximately at 0.17mmbpd of crude oil and condensate, adding that production will continue until the field reaches its economic limit in 2038

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