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Nigerian oil reserves look good as ExxonMobil discovers new one billion crude deposits

Recent discovery of massive crude oil deposits by ExxonMobil has been seen by experts as an added advantage to the economy is a tailored policy framework is worked out to track the exploration.

The discovery has however pushed up Nigeria’s crude oil reserves increased to 37 billion barrels, a feat capable of eliciting investment drive in exploration production.

Nigeria unit of United States-based ExxonMobil Corporation last year, discovered about one billion barrels of crude oil at the Owowo field, located off shore Koloama community in Bayelsa State.

The new discovery is estimated to hold about one billion barrels of crude oil in reserve, which at an average price of $50 per barrel, holds a $50 billion in potential revenues for Nigeria’s oil and gas industry over the next few years.

Whereas analysts say the development if well managed can deliver the nation’s target of boosting reserves to 40 billion barrels by 2020.

Before now, Nigeria’s dream feat had been a production target of four million barrels per day and 40 billion barrels in reserves, which it had been pushing since 2010.

Indications are rife that barring any resurgence of hostilities, the dream is as good as met in record time.

This may be the reason behind Acting President’s recent tour of the oil rich Niger Delta to cement the entire peace overture made at Abuja over the months by elders from the region who had been going on the invitation of the federal government.

Key success of the visit by Prof Osinbajo to Niger Delta with a promise to improve on infrastructure development in the area, can be seen in the observed drop in vandalism and restiveness in the last one month or more.

In a recent summit in Abuja, the Group Managing Di­rector of the Nigerian Na­tional Petroleum Corpo­ration (NNPC), Dr. Maikanti Baru, noted that for Nigeria to achieve the 40 billion barrels reserves and four million barrels per day by 2020, the country needs to grow its reserve by at least one billion barrels year-on-year till 2020.

According to him, considering our quest for revenue generation as a nation, it is given that we need to increase our exploration efforts in order to sustain our re­serve base and grow production.

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