As Nigeria strives to attain its set target of 40 billion barrels of crude oil reserve by 2010, indications emerged yesterday, that the reserve base, which stood at about 35 billion barrels, may have declined to about 33 barrels, representing a loss of over two billion barrels.
Speaking with newsmen at the Offshore West Africa (OWA) holding in Abuja, Director of Department of Petroleum Resources (DPR), Mr Tony Chukwueke, said the reserve base as at December 2007 was 33 billion barrels, indicating a sharp drop in the figure released in 2006, by the immediate past Minister of Energy, Dr Edmund Daukoru. He cautioned that if the deepwater technology does not catch up with the country, the country�s dream of attaining four million barrels per production and boosting its reserve base by 2010 will remain a mirage.
�As you know, a lot of oil is expected to come from the deep offshore, but deepwater technology, which is the purpose of this conference, is not moving as fast. Today, the deepest production has come from 2.3 kilometres of water. We, in Nigeria have given out an average of below 2.5 kilometres, which is in anticipation of meeting this 40 billion barrels by 2010. If the technology does not catch up with us, we will not be able to meet this target. It is essential to organise this type of conference that focuses on those technologies that enable us to bring up deepwater oil and gas reserves to the surface economically,� he said.
Meanwhile, the Federal Government yesterday pledged its determination to provide adequate funding for the petroleum sector, in order to boost the various gas projects, reduce gas flares and increase the country�s revenue profile.
Giving the assurance in his address at the conference, Yar�Adua, assured oil and gas industry operators that the issue of funding, which has posed a great challenge in the sector, will be taking care of this year, as government is more determined as ever, to achieve its set target to attain four million barrels per day production capacity and 40 billion reserve base by 2010.
Yar�Adua, represented by Minister of State for Energy (Petroleum), Odein Ajumogobia, SAN, at the conference themed �The Gulf of Guinea: Sustaining the Momentum of World Class Resource Development,� said 2008 is the first time the oil and gas budget will not be limited by the country�s budgetary constraints, but by the demand and capacity of the oil industry.�The challenge really is funding, but I am happy to say that we have robustly addressed the issue. The year 2008 will be the first time our budgeting will not be limited by budget constraints, but by the demand of the industry. The issue of rising costs will no longer be an issue, the country welcomes more investments and we hope that as more investments come in, costs will go down and this ensures greater profitability,� he said.Pointing out that West Africa is the fastest growing supply in view of the decline in the Gulf of Mexico and the North Sea, Yar�Adua said the sub-region where Nigeria accounts for more than 80 per cent output was a potential counterbalance to the decline in other regions.He charged the operators to provide a linkage between offshore production and onshore activities, arguing that as more activities go on offshore, there should be facilities onshore to service the industry and support the targeted four million barrels a day production come 2010. Director, Department of Petroleum Resources (DPR), Mr Tony Chukwueke, also said plans are at top gear by the Nigerian National Petroleum Corporation (NNPC) and its joint venture partners on the measures to be put in place to fund their ventures.
Jan302008