Petroleum Minister

Petroleum Minister

The Federal Government says crude oil production in the country has been sustained above an average of 2.30 million barrels per day despite oil theft, and pipeline vandalism.  This disclosure came on the heels of concerns being expressed in some quarters that oil production in the country has dwindled drastically due to increase in oil bunkering.

Petroleum Minister Mrs. Diezani Alison Madueke gave the position of the Federal Government on the crude oil production while presenting the mid-term scorecard of her ministry at the on-going 2013 Ministerial Platform.

She said sustaining production at these levels remains a challenge because of increasing pipeline vandalism and crude theft, which intermittently results in production falling below the programmed 2.46 million barrels per day.

The Minister however said the challenge is now being addressed through enforcement and the Crude Oil Fingerprinting Initiative to trace the source of stolen crude.

Similarly, the Petroleum Ministry has concluded a pilot scheme for real time crude oil production monitoring as part of measures to improve accountability in the nation?s oil exploration.  According to the Minister, the programme which is referred to as National Production Monitoring System (NPMS) is remotely controlled not only to monitor real time production, but also monitor other field parameters needed for effective reservoir management and administration.

She hinted that within the period under review, the ministry increased exploration activities onshore, offshore and inland basins as part of their strategic responsibility to grow reserve and production in line with government?s drive to achieve 40 billion barrels reserve and 4 million barrels production per day including condensate.

According to the Minister, 19 exploration wells, 93 development wells and 33 Workover wells were drilled last year while oil exploration was stepped-up in the entire Inland Basins of Chad, Anambra, Benue, and Bida/Sokoto/Dahomey.

She said ?this increased exploration activity is reflected in the following: Acquisition of a total of 6,102 Sq.km of seismic data including 818 Sq.Km acquired for FES operations in the Chad Basin in Phases 3, 4 and 5 combined; Acquisition of 266 Sq.Km of seismic data in the Phase 6 is ongoing by IDSL ? a subsidiary of NNPC ? in the Chad Basin even at the height of the security challenges. We have also grown IDSL Land Acquisition capacity by additional three (3) 100% wholly owned seismic party crews?.

She announced that the Usan FPSO, a new deep offshore field was commissioned in 2012 and currently produces about 103,000 barrels of crude per day and that the Egina project which was awarded at a cost of about $15 Billion is expected to add 180,000 barrels per day.

Mrs. Madueke was delighted that active participation of indigenous companies has resulted in the new projects coming on-stream like the Ebok Terminal with current daily crude oil production of 7,000 barrels per day and a plateau production of 50,000 b/d at full capacity;

While expatiating on the nation?s oil and gas reserves, the Minister said in 2012, a total of 600Million barrels of reserves were added representing 70% reserves replacement.

Furthermore, as at end of year 2012, the crude oil reserve base stood at 36.8billion barrels; representing 0.06% decrease as compared to year end 2011 figures, she disclosed.

The Minister added that gas reserves at end of year 2012 was 182 Trillion cubic feet representing a 0.01% drop as compared to year end 2011 figures.

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