Nigeria’s Oil Reserves Sliding To 36bn Barrels over Untapped Frontiers, Idle Assets, NAPE Warns
*Says FG must waive upfront signature bonus, incentivise data acquisition, fast-track marginal fields to replace resevess Peter Uzoho The President of the Nigerian Association of Petroleum Explorationists (NAPE), Mrs. Olajumoke
Olajumoke Ajayi, President of the Nigerian Association of Petroleum Explorationists (NAPE), has expressed concerns over Nigeria's declining oil reserves. Currently standing at 37 billion barrels, reserves have fallen from 38 billion barrels a few years ago and may dip to 36 billion barrels if unexplored frontier basins and idle assets remain untouched.
Ajayi, Managing Director of WAEP, highlighted that Nigeria presently produces solely from the Niger Delta basin, despite possessing six other unexplored basins. With the Dangote Refinery and modular refineries set to increase Nigeria's crude needs, Ajayi warned that reserves could dwindle further if not replenished. She emphasized the urgency of replacing reserves, pointing out that many operators hold undeveloped fields and marginal discoveries that could be reignited through re-entry operations.
Ajayi urged operators to collaborate within their proximity instead of seeking large financing. She also called for a shift in frontier basin strategy, suggesting that government should incentivize data acquisition in frontier basins before considering signature bonuses. Without proactive measures, Ajayi warned that Nigeria's vast oil reserves won't translate into a sustainable feedstock for its refining expansion.
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