Dr. Ibe Kachikwu, Nigeria’s Minister of State for Petroleum Resources says despite talks about new forces coming into the market, oil will be around and in high demand for a long time.
While delivering his ministerial address Tuesday at the 2018 Nigeria Oil and Gas (NOG) Conference and Exhibition, in Abuja, Kachikwu said, “When we talk of other forces coming to replace oil, the truth remains that oil demands continues to increase, more oil continues to be found by the day.”
He expressed satisfaction over the growth being recorded in Nigeria’s oil sector according to latest figures released by the Department of Petroleum Resources (DPR).
“Don’t worry about all the nuances you hear about oil going out of stock,” Kachikwu said, “The reality is, even when people point at electric cars, they still represent only 2percent of the instrument of mobility today,” he added.
“So, there is enough reason to feel that oil will be there for a long time, but the reality is that the performance within the oil sector will differ. It is not how long it lasts, but what value it brings to the populace,” he said.
Giving more insight into Nigeria’s oil sector growth, he said figures points to 36.18 billion barrels of proven reserves of crude oil and condensates as of first quarter of 2018, adding a life index of over 50 years at a depletion rate of 1.9 percent.
Dr Kachikwu said over 33 new mega projects adding volumes of over 50 million barrels equivalents were sanctioned by the DPR in 2017.
“There are about 80 open acreages currently under review to enhance the prospects in this sector. There are huge Final Investment Decisions (FIDs) in the horizon: Bonga Southwest and Zabazaba which will be first ultra-deep-water project in the region,” he said.
While stating that Nigeria currently produces about 2.15 million barrels per day, he said there are about 46 E&P companies producing from over 180 fields as at the end of 2017.
The minister said 55.6 percent of oil production comes from JV portfolio, 35 percent from PSCs, while 6 percent comes from sole risks and 3 percent from marginal fields. He said Nigeria’s. aspiration is to achieve production cost of $15 per barrel as against the present $23.
Giving more details he said by the end of the Q1 2018, field developments with total expectant production of 200,000 barrels were approved by the DPR.
Gas reserves be said are presently estimated at 199TCF up from 192TCF and with the capacity to grow to up to 600TCF.