Nigeria now produces crude oil from over 246 fields scattered across the country and operates 188 production stations/platforms, according to the Federal Government. Data obtained in Abuja on Friday from the Nigerian Upstream Petroleum Regulatory Commission, a Federal Government agency, revealed the rise in Nigeria’s oil-producing fields following the first commercial oil discovery by Shell Darcy at Oloibiri, Bayelsa State, in 1956. The NUPRC document, focusing on stability in the oil sector, stated, “Since 1956, the Nigerian upstream oil and gas landscape has expanded with the development and installation of numerous oil and gas facilities.”
The document further detailed that Nigeria boasts over 246 producing fields, 2,777 producing strings, 188 production stations/platforms, four gas terminals, five land terminals, 11 FSOs (Floating Storage and Offloading Units), 18 FPSOs (Floating Production Storage and Offloading), and several other facilities at various developmental stages, positioning Nigeria for increased production and enhanced energy security.
Recent reports have indicated improvements in Nigeria’s oil outputs and installations. A report by HEADLINENEWS on March 17, 2024, highlighted that the number of functional oil drilling rigs in the country slightly increased to 16 in February, based on data from the March 2024 Monthly Oil Market Report of the Organisation of Petroleum Exporting Countries.
OPEC data revealed an increase in Nigeria’s oil rigs from 15 in January to 16 in February, a significant development for crude oil production. Industry operators viewed this increase positively, especially considering that Nigeria heavily relies on oil exports for over 80% of its foreign exchange earnings.
Regarding the protection of oil and gas assets in the face of prevailing security challenges, the latest NUPRC document emphasized the critical importance of safeguarding these assets for the country’s economy, citizens’ welfare, and sustainable national development.
The document noted that even though Nigeria currently produces an average of 1.33 million barrels of oil per day and 256,000 barrels of condensate per day, the national technical production potential stands at 2.26 million bpd, while the current OPEC quota is 1.5 million bpd. Bridging the gap between actual and technical oil production presents a significant revenue opportunity for Nigeria, addressing the foreign exchange deficit and strengthening economic resilience.
Highlighting the need for enhanced security for oil and gas infrastructure, the commission stressed the importance of adopting an integrated approach that addresses infrastructure, transportation, and security challenges holistically to foster stability, sustainability, and resilience within the energy sector.
This integrated strategy includes investments in new infrastructure projects, maintenance of existing assets, deployment of modern technologies, and comprehensive security measures to protect energy infrastructure from threats like vandalism, theft, sabotage, and cyber attacks. Clear policy frameworks and regulatory mechanisms are also crucial to support investment, promote competition, ensure transparency, and accountability within the energy sector, as stated by the upstream regulator.
