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‘Why Nigeria Cannot Attain 40bn Crude Oil Reserve Target’

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The Nigerian Association of Petroleum Explorationists (NAPE), has said that absence of fiscal policy would continue to retard investments flow in Nigeria’s oil and gas industry, such that attainment of 40billion crude oil reserve would not be realised.

Addressing the media on its upcoming Annual International Conference and Exhibition, in Lagos yesterday, president of NAPE, Andrew Ejayeriese, said it was not possible to achieve that dream because existing petroleum law was not attractive to investors and does not guarantee return on investments on deepwater exploration.

Ejayeriese, said the law was made when exploration centred on shallow and onshore campaigns but activities were now shifting to deep offshore exploration but new investments were currently stalled.

According to him, the Petroleum Industry Bill, (PIB), which has been at the national assembly for the past 18 years has remained a challenge and no additional volume was being added to existing production.

LEADERSHIP reports that Maikanti Baru, group managing director of Nigerian National Petroleum Corporation (NNPC) recently said the corporation would increase the country’s crude oil reserves by one billion barrels yearly to attain 40 billion barrel by 2020.

Baru gave the assurance during his keynote address titled: “Driving Nigeria’s Oil and Gas Industry Towards Sustained Economic Development and Growth,” at the 17th edition of the Nigerian Oil and Gas conference in Abuja this year.

The NAPE president, who challenged that statement , said as technical petroleum professionals, there was no possibility to that aspiration with the present policy regime and that is why the conference billed to hold from November 18-22, 2018 in Lagos would deliberate on major critical issues in a quest to address the challenges in the Nigerian energy industry.

“Oil and Gas will continue to be a commodity characterised by peaks and troughs. The cyclicality of the industry is not a new phenomenon. Stability in oil prices is critical in order to achieve high economic growth.

The global energy market is getting increasingly more complex; with the low oil price regime, hydrocarbon exploration and exploitation are no longer as profitable it was prior to the price decline in 2015,” he said.

According to him, while global demand for reliable and affordable energy would continue to rise in the foreseeable future as the world is moving toward a low carbon era. Consequently, oil and gas companies would find it expedient to review long – term strategies and innovate, recognising the possibility that oil is on the brink of suffering a fate similar to coal.



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