…Local firms now account for 10% of total production

BY MICHAEL EBOH
Nigeria’s crude oil revenue is set to grow by $17.17 million, about N2.75 billion daily, as the Nigerian Petroleum Development Company, NPDC, is projecting a crude oil production of about 160,000 barrels per day, bpd.

Barring any unforeseen circumstance, if production is sustained, it will translate into additional revenue of about N82.5 billion monthly or N990 billion annually.
The NPDC said it is also projecting a 600 million standard cubic feet, scf, of gas production by the end of 2014.
The Managing Director, NPDC,Mr. Victor Briggs, said in Benin, weekend that the company is currently producing an average of 140,000 bpd and is currently supplying about 410 millionscf/d to the domestic market.

He disclosed that NPDC, the production unit of the Nigerian National Petroleum Corporation, NNPC, also planned to invest about $1.8 billion annually (N288 billion) over the next two years.
He said that this is meant to ensure that crude production is increased to about 300,000 bpd and 900 million scf/d by 2018.

He said the investment is not only necessary to expand its production capacity, but also to maintain its equipment and ensure that its facilities perform at optimal levels.
Briggs said the company’s reserves to production is about 80 years, adding that the company is currently carrying out a number of projects to end gas flaring across a number of its facilities.

According to him, NPDC is currently flaring gas at Oredo, and its offshore facilities, noting, however, that when its Final Investment Decision, FID, is taken on one of its facility in June 2014, and if all the necessary facilities are put in place, it will end gas flaring across all its oil fields by 2016.

He further disclosed that indigenous oil companies have over the years made significant improvement in shoring up their capacity, accounting for about 10 per cent of the country’s total crude oil and gas production.
According to him, indigenous oil companies now produce an average of 230,000 bpdy, compared to the total daily crude production of about 2.3 million bpd.

However, he said, “Whatever is been produced today is not enough. We need to do more, as this will change the rules of engagement in the Nigerian oil industry.
“If indigenous oil companies are producing about one million barrels of crude daily or half of Nigeria’s crude oil, the international oil companies will no longer be able to hold the country to ransom.

“There is absolute necessity for indigenous capacity to grow. By this, we will be sending a message that we, the local companies, can do it; we can compete effectively in both the local and international oil and gas market.”