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‘Idle Brownfields To Boost Nigeria’s Oil Production, Refining’

by Chika Izuora
1 year ago
in News
Oil Production
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Existing idle brownfields in Nigeria have been identified as potential assets that can list Nigeria’s oil production capacity in the next few years.

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President Bola Tinubu and the Nigerian National Petroleum Company Limited (NNPCL) have vowed to ramp up production of oil and gas to shore up revenue generation. Oil theft and pipeline vandalism have long plagued Nigeria’s upstream oil and gas industry, driving majors out of the country and often resulting in force majeure at the key crude oil export terminals.

However, Nigerian oil production has started to recover in recent months and hit in February its highest level in more than three years amid a concerted effort to crack down on targeted attacks and organised theft rings.

The chief executive Officer(CEO) of Kenyan International, Dr. Victor Ekpenyong, at a public function said Nigeria has the potential to significantly increase its oil production and meet local refining demands by tapping into its idle brownfields.

Ekpenyong,in his presentation, at the Oil Well Intervention Conference (OWIWA 2024) West Africa’s Leading Well Intervention Conference in Lagos, highlighted that the untapped potential of Nigeria’s brownfield sites, which are previously developed oil fields that are currently underutilised or inactive, represent a substantial opportunity to boost the nation’s declining oil output and local refining capacity, especially in the era of complete deregulation of the downstream sector and the removal of subsidies for petroleum prices.

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“Nigeria has a wealth of underexploited brownfield sites that, with the right policy realignment, investment and technological interventions, can be revitalised to enhance our oil production capabilities,” said Ekpenyong.

“By unlocking these idle assets, we not only increase our oil production output but also ensure that we meet the now increasing local demand for refined products, reducing our dependence on imports, saving our foreign exchange and strengthening our energy security,” he added.

Kenyon International has been advocating for a renewed focus on developing the country’s brownfield sites.

The company has demonstrated success in revitalising similar sites across Nigeria, bringing in innovative technologies and expertise to maximise production efficiency and economic returns.

 

“The benefits of focusing on brownfields are manifold,” Ekpenyong added. “Apart from boosting production, it creates job opportunities, fosters local expertise, and stimulates economic growth. Furthermore, the environmental footprint is minimised compared to developing new greenfield sites, aligning with global sustainability goals.”

 

The CEO also emphasised the importance of collaboration between the government, private sector, and local communities to realise the full potential of these brownfields. “It is imperative that we create an enabling environment for investment and innovation. By working together, we can transform these dormant fields into productive assets that contribute significantly to Nigeria’s economy.”


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