Newly appointed Director, Department of Petroleum Resources (DPR), Engr Sarki Auwalu, has reassured that contrary to some expert claims that Nigeria’s oil resources are nearing the end of their shelf life in the next 10 years, the resources will serve the economy for decades to come.
He said, “We know this simply isn’t the case. The Nigerian sedimentary basins are still open for business and with about 37 billion barrels remaining and a lot of yet to be explored potential, we will still be producing oil for decades to come.
“However, as the oil becomes more difficult and costlier to extract, new approaches are required to improve the economics of operating in the industry and regulating it efficiently.
“As a regulator, we know that there is much we can do to support additional production and maximise the potential of the Nigerian resources, working in partnership with the industry.”
However, the Chemical Engineer averred that time has come for Nigeria come up with a deliberate reserve growth policy and financial incentives for operators to take on the challenges of tapping the increasingly hard-to-reach resources.
At a stakeholders’ workshop in Lagos last week, the Deputy Director and Head of Upstream Division, DPR, Mr Enorense Amadasu, expressed concern over the low level of exploration in the nation’s oil and gas industry, saying only one exploration well was drilled from January to September this year.
He said “There is a need for exploration and production companies to focus on exploration or things that will help to build additional reserves.”
