Nigeria - Oil Reserves To Reach 40 Billion Barrels - Oil Minister

Nigeria - Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has said the nation’s oil reserves can grow to 40 billion barrels from over 36 billion barrels by 2020 with daily production capacity of four million barrels.

Alison-Madueke, represented by the Group Managing Director, Nigerian National Petroleum Corporation , Mr. Andy Yakubu, said this in Lagos at a three-day annual conference and exhibition of the Society of Petroleum Engineers.

Highlighting the strategies to be implemented to achieve growth in the oil industry, she said that the Nigerian deep and shallow waters had the capacity to increase the productivity level.

She said they (deep and shallow waters) could generate additional one million barrels per day within the next few years.

Alison-Madueke said the expected growth would also contribute to the global supply of oil and gas, if it could be achieved before year 2020.

The News Agency of Nigeria reported that the theme of the conference was, “The future of Oil and Gas: Right Balance with Sustainable Stakeholders’ Participation.”

The minister said the aggressive reform embarked upon by the Federal Government would reposition the oil and gas industry.

She said, “Critically, the current Nigeria crude oil reserves are over 36 billion barrels and a production capacity of about 2.5 million per day.”

The minister said that these had made Nigeria a high supplier of crude oil, adding that the opportunity should be used to increase the country’s production capacity.

Yakubu had recently said that a significant milestone was recorded in the oil and gas sector as Nigeria’s crude oil production increased from 2.4 million barrels per day to 2.7 million bpd.

He said the security measures put in place by the Federal Government in the Niger Delta were beginning to yield positive results as shown in the increased crude oil production in the country.

“We want to thank the President, Dr. Goodluck Jonathan, for his great initiative to restore security with regards to pipelines and our crude oil production facilities and we thank the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, for driving the process. I am glad to report to you that in crude oil production, yesterday (Wednesday), we recorded an all time high of 2.7 million barrels. This had not been recorded before,” Yakubu added.

Alison-Madueke said that if the oil and gas sector was further exploited, “it shall provide the much needed increase in revenue, employment generation for our youths and further increase the growth of other sectors of the Nigerian economy.”

She commended the efforts of the society in addressing some issues that were very crucial to the industry.

The minister said the deregulation of the downstream sector would further develop the sector.

“There is no doubt that the deregulation of the industry is going to help investors because it will guarantee their investment.

“The deregulation of the downstream, particularly as it affects kerosene and petrol, is very critical to return on investment,” she said.

The SPE Chairman, Mr. Ikechukwu Okafor, said the conference would provide a forum for healthy dialogue and purposeful engagement between the stakeholders on the future of oil and gas.

“The aim is to stir our members and the general public to embrace and promote environmentally sustainable development of oil and gas in Nigeria,” he said.