By , 07.28.2010 

 

The Department of Petro-leum Resources (DPR) has raised the alarm over the declining rate of  Nigeria’s crude oil reserves, saying it has dropped by 1.6 billion barrels (about 4.79 per cent)  in just one year.The drop is due to declining exploration activities and full field studies by oil companies operating in the country.The companies now concentrate more on drilling and production rather than oil exploration that would boost reserves.

 

DPR Director Mr. Wada Andrew Obaje made these known while briefing newsmen yesterday on activities of the Nigerian oil and gas sector in the second quarter. Nigeria holds the eight largest oil reserves in the world, having 37 billion barrels inclusive of condensate. A recent release by the Organisation of Petroleum Exporting Countries (OPEC) revealed that more than three-quarters of the world’s proven oil reserves are located in OPEC member countries, with Nigeria accounting for 3.6 percent of the total.

 

Obaje said the current oil reserves stand at 31.81 billion barrels and condensate reserves at 5.35 billion barrels. “The country’s oil reserves dropped by 1.6 billion barrels (4.79 per cent); condensate reserves increased by 0.152 billion barrels (2.92 per cent). The nation’s oil reserves currently stand at 31.81billion barrels of oil, condensate reserve was 5.35 billion barrels. Total oil and condensate reserve was 37. 16 billion barrels,”  he said.

 

The DPR director also confirmed that daily crude oil production during the period under review was 2.3 billion barrels per day (bpd). A breakdown of the figure showed that in April 2010, the average daily production was 2,373,922 bpd in May, the average daily production rate was  2,271,424 bpd, while that of June was 2,405,340bpd. This brings the total average daily production in the second quarter to 2,350,229 bpd.  He also restated that the country’s current production quota is 1,673,000 barrels.

 

Obaje also said a total of 804 sq Km of 3D sesimic acquisition was approved for four exploration and production companies  in the quarter while a total of 2,291.98 Sq KM (3-D) of seismic data was acquired between April and June 2010 as against 382.583 sq km acquired in the first quarter of 2010.He said “15 seismic processing/ reprocessing activities were ongoing by five exploration and production companies during the quarter as against 19 in the 1st quarter 2010. Twenty-eight  rigs were in operation during the second quarter as against twenty – five (25) recorded during the first quarter of 2010.”

 

He however, disclosed that no exploratory well was spudded during the quarter. Although, one exploratory well proposal was received from one company whose identity was not made known, the proposal is still being processed, he explained. He added that 59 development wells were drilled during the period under review as against 40 wells drilled in the first quarter of 2010.The Nigerian National Petroleum Corporation (NNPC) had projected that the country’s oil reserve would hit 40 billion barrels by December this year, with increased in exploration activities especially in the deep offshore. 

 

However THISDAY investigations revealed that activities in the deep offshore have been on the decline as oil companies have shunned the arena due to unresolved issues regarding taxes and royalties in the  Petroleum Industry Bill (PIB) currently before the National assembly. 
Their contention, among others, was that the aggregate impact of multiple taxes, higher royal rates and loss of incentives proposed in the PIB will have significant negative impact on gas and deep water projects.

 

The DPR had in its 2009 third quarter briefing in November last year, disclosed that the reserve base as at January 2009, stood at 33.41 billion barrels and condensate reserves  5.20 billion barrels.  The agency which regulates activities of the oil and gas industry also confirmed that the country has 97.389 trillion standard cubic feet of associated gas and 87.613 trillion Standard cubic feet of non-associated Gas (85tcf) making a total of 185 trillion standard cubic feet.

 

The agency further observed a net increase of oil reserves of 480 million barrels as against the January 2008 reserves figures representing about 1.46 per cent increase. “The increase is noticeable mostly in Production Sharing Contracts (PSC) Assets in the Deep Offshore areas,” said the DPR.

 

However, the reserve position in the first quarter of 2010 could not be released following an audit of oil and gas reserves of all Exploration and Production companies in the country by the agency. The audit exercise which was carried out to validate and authenticate the reserve figures submitted to DPR by oil companies, released recently showed a further drop of 1.6 billion barrels, bringing the current reserve base to only 31.81 billion barrels.

 

Source:ThisDay

 

By Chika Amanze-Nwachuku, 07.28.2010 

 

The Department of Petro-leum Resources (DPR) has raised the alarm over the declining rate of  Nigeria’s crude oil reserves, saying it has dropped by 1.6 billion barrels (about 4.79 per cent)  in just one year.The drop is due to declining exploration activities and full field studies by oil companies operating in the country.The companies now concentrate more on drilling and production rather than oil exploration that would boost reserves.

 

DPR Director Mr. Wada Andrew Obaje made these known while briefing newsmen yesterday on activities of the Nigerian oil and gas sector in the second quarter. Nigeria holds the eight largest oil reserves in the world, having 37 billion barrels inclusive of condensate. A recent release by the Organisation of Petroleum Exporting Countries (OPEC) revealed that more than three-quarters of the world’s proven oil reserves are located in OPEC member countries, with Nigeria accounting for 3.6 percent of the total.

 

Obaje said the current oil reserves stand at 31.81 billion barrels and condensate reserves at 5.35 billion barrels. “The country’s oil reserves dropped by 1.6 billion barrels (4.79 per cent); condensate reserves increased by 0.152 billion barrels (2.92 per cent). The nation’s oil reserves currently stand at 31.81billion barrels of oil, condensate reserve was 5.35 billion barrels. Total oil and condensate reserve was 37. 16 billion barrels,”  he said.

 

The DPR director also confirmed that daily crude oil production during the period under review was 2.3 billion barrels per day (bpd). A breakdown of the figure showed that in April 2010, the average daily production was 2,373,922 bpd in May, the average daily production rate was  2,271,424 bpd, while that of June was 2,405,340bpd. This brings the total average daily production in the second quarter to 2,350,229 bpd.  He also restated that the country’s current production quota is 1,673,000 barrels.

 

Obaje also said a total of 804 sq Km of 3D sesimic acquisition was approved for four exploration and production companies  in the quarter while a total of 2,291.98 Sq KM (3-D) of seismic data was acquired between April and June 2010 as against 382.583 sq km acquired in the first quarter of 2010.He said “15 seismic processing/ reprocessing activities were ongoing by five exploration and production companies during the quarter as against 19 in the 1st quarter 2010. Twenty-eight  rigs were in operation during the second quarter as against twenty – five (25) recorded during the first quarter of 2010.”

 

He however, disclosed that no exploratory well was spudded during the quarter. Although, one exploratory well proposal was received from one company whose identity was not made known, the proposal is still being processed, he explained. He added that 59 development wells were drilled during the period under review as against 40 wells drilled in the first quarter of 2010.The Nigerian National Petroleum Corporation (NNPC) had projected that the country’s oil reserve would hit 40 billion barrels by December this year, with increased in exploration activities especially in the deep offshore. 

 

However THISDAY investigations revealed that activities in the deep offshore have been on the decline as oil companies have shunned the arena due to unresolved issues regarding taxes and royalties in the  Petroleum Industry Bill (PIB) currently before the National assembly. 
Their contention, among others, was that the aggregate impact of multiple taxes, higher royal rates and loss of incentives proposed in the PIB will have significant negative impact on gas and deep water projects.

 

The DPR had in its 2009 third quarter briefing in November last year, disclosed that the reserve base as at January 2009, stood at 33.41 billion barrels and condensate reserves  5.20 billion barrels.  The agency which regulates activities of the oil and gas industry also confirmed that the country has 97.389 trillion standard cubic feet of associated gas and 87.613 trillion Standard cubic feet of non-associated Gas (85tcf) making a total of 185 trillion standard cubic feet.

 

The agency further observed a net increase of oil reserves of 480 million barrels as against the January 2008 reserves figures representing about 1.46 per cent increase. “The increase is noticeable mostly in Production Sharing Contracts (PSC) Assets in the Deep Offshore areas,” said the DPR.

 

However, the reserve position in the first quarter of 2010 could not be released following an audit of oil and gas reserves of all Exploration and Production companies in the country by the agency. The audit exercise which was carried out to validate and authenticate the reserve figures submitted to DPR by oil companies, released recently showed a further drop of 1.6 billion barrels, bringing the current reserve base to only 31.81 billion barrels.

 

Source:ThisDay

 

 

By Chika Amanze-Nwachuku, 07.28.2010 

 

The Department of Petro-leum Resources (DPR) has raised the alarm over the declining rate of  Nigeria’s crude oil reserves, saying it has dropped by 1.6 billion barrels (about 4.79 per cent)  in just one year.The drop is due to declining exploration activities and full field studies by oil companies operating in the country.The companies now concentrate more on drilling and production rather than oil exploration that would boost reserves.

 

DPR Director Mr. Wada Andrew Obaje made these known while briefing newsmen yesterday on activities of the Nigerian oil and gas sector in the second quarter. Nigeria holds the eight largest oil reserves in the world, having 37 billion barrels inclusive of condensate. A recent release by the Organisation of Petroleum Exporting Countries (OPEC) revealed that more than three-quarters of the world’s proven oil reserves are located in OPEC member countries, with Nigeria accounting for 3.6 percent of the total.

 

Obaje said the current oil reserves stand at 31.81 billion barrels and condensate reserves at 5.35 billion barrels. “The country’s oil reserves dropped by 1.6 billion barrels (4.79 per cent); condensate reserves increased by 0.152 billion barrels (2.92 per cent). The nation’s oil reserves currently stand at 31.81billion barrels of oil, condensate reserve was 5.35 billion barrels. Total oil and condensate reserve was 37. 16 billion barrels,”  he said.

 

The DPR director also confirmed that daily crude oil production during the period under review was 2.3 billion barrels per day (bpd). A breakdown of the figure showed that in April 2010, the average daily production was 2,373,922 bpd in May, the average daily production rate was  2,271,424 bpd, while that of June was 2,405,340bpd. This brings the total average daily production in the second quarter to 2,350,229 bpd.  He also restated that the country’s current production quota is 1,673,000 barrels.

 

Obaje also said a total of 804 sq Km of 3D sesimic acquisition was approved for four exploration and production companies  in the quarter while a total of 2,291.98 Sq KM (3-D) of seismic data was acquired between April and June 2010 as against 382.583 sq km acquired in the first quarter of 2010.He said “15 seismic processing/ reprocessing activities were ongoing by five exploration and production companies during the quarter as against 19 in the 1st quarter 2010. Twenty-eight  rigs were in operation during the second quarter as against twenty – five (25) recorded during the first quarter of 2010.”

 

He however, disclosed that no exploratory well was spudded during the quarter. Although, one exploratory well proposal was received from one company whose identity was not made known, the proposal is still being processed, he explained. He added that 59 development wells were drilled during the period under review as against 40 wells drilled in the first quarter of 2010.The Nigerian National Petroleum Corporation (NNPC) had projected that the country’s oil reserve would hit 40 billion barrels by December this year, with increased in exploration activities especially in the deep offshore. 

 

However THISDAY investigations revealed that activities in the deep offshore have been on the decline as oil companies have shunned the arena due to unresolved issues regarding taxes and royalties in the  Petroleum Industry Bill (PIB) currently before the National assembly. 
Their contention, among others, was that the aggregate impact of multiple taxes, higher royal rates and loss of incentives proposed in the PIB will have significant negative impact on gas and deep water projects.

 

The DPR had in its 2009 third quarter briefing in November last year, disclosed that the reserve base as at January 2009, stood at 33.41 billion barrels and condensate reserves  5.20 billion barrels.  The agency which regulates activities of the oil and gas industry also confirmed that the country has 97.389 trillion standard cubic feet of associated gas and 87.613 trillion Standard cubic feet of non-associated Gas (85tcf) making a total of 185 trillion standard cubic feet.

 

The agency further observed a net increase of oil reserves of 480 million barrels as against the January 2008 reserves figures representing about 1.46 per cent increase. “The increase is noticeable mostly in Production Sharing Contracts (PSC) Assets in the Deep Offshore areas,” said the DPR.

 

However, the reserve position in the first quarter of 2010 could not be released following an audit of oil and gas reserves of all Exploration and Production companies in the country by the agency. The audit exercise which was carried out to validate and authenticate the reserve figures submitted to DPR by oil companies, released recently showed a further drop of 1.6 billion barrels, bringing the current reserve base to only 31.81 billion barrels.

 

Source:ThisDay