Oil Industry: NCDMB Predicts Steady Progress Despite Shrunken Investments

The Nigerian Content Development and Monitoring Board (NCDMB) has predicted steady progress in the oil and gas industry despite shrunken investments, global quest for cleaner energy and divestments of some onshore and shallow assets by international oil companies.
Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote stated this in Abuja at the 3rd Biennial International Conference on Hydrocarbon Science and Technology, organised by the Petroleum Training Institute (PTI) with the theme “The Future of the Oil and Gas Industry: Opportunities, Challenges, and Development.”
He identified the positive trends in the industry to include the growth of oil reserves, gas production, gas utilisation, local refining, and skills acquisition, which he said portend great opportunities for the industry.
Wabote hinted that the manifestation of these trends and projections could lead to Nigeria achieving zero crude oil export and becoming a gas-powered economy for the socio-economic development of the nation.
He informed that before achieving zero crude oil export that Nigeria would fully refine all the oil produced from its fields and export excess refined products, noting that the impact on in-country value addition would be massive on the Gross Domestic Product (GDP).
The scribe was optimistic that Nigeria would meet the target in view of the various refining investments such as the 650,000 barrels per day Dangote refinery, BUA group refinery project, Waltersmith modular refinery, Duport Midstream refinery, OPAC refinery, Edo refinery, Aradel Holdngs refinery as well as the existing 445,000 barrels per day capacity from the Kaduna, Warri and Port Harcourt refineries.
He noted that the completion of these projects would culminate in Nigeria achieving a combined refining capacity of approximately 1.5 million barrels per day by 2025.
On gas projections, Wabote pointed out that Nigeria’s proven gas reserves stood at 208.83 TCF, although the nation’s gas production had dropped from an average of 4.8 billion standard cubic feet per day in 2020 to 4.3bscf/day in 2022.
He stated that the renewed focus on gas production and utilization of gas within the declared Decade of Gas programme in addition to various upstream and midstream gas development projects, would rise to a 50 percent increase in the volume of gas that would be produced and utilized in-country.
Some of the pending projects include H-block gas development projects, NLNG Train 7 project, UTM Offshore Limited’s Floating LNG project and other mini-LNG and CNG projects.
When fully completed, Wabote assured that it would increase nationwide adoption of gas for power generation, domestic cooking, autogas, and utilization in methanol, fertilizer production, and other industrial applications.
The Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobiri challenged participants to develop homegrown solutions to the challenges facing the Nigerian oil and gas industry such as pipeline vandalism and low productivity.
He mandated all the agencies in the Ministry of Petroleum Resources to collaborate closely to invent relevant technological solutions needed to address challenges in the industry.
Lokpobiri advised that all efforts must be directed towards increasing Nigeria’s crude oil production and enhancing revenue from crude oil sales.
The Secretary General of the African Petroleum Producers Organisation (APPO) Dr. Farouq Ibraham recognised that the energy landscape was evolving and emphasised the dual imperatives of sustainability and innovation.
He hinted that the oil and gas industry must play a pivotal role in shaping a responsible and low-carbon energy future while navigating a dynamic world of opportunities and challenges.
The APPO scribe highlighted the significance of collaborative research and development among oil-producing nations, saying that it would produce transformative solutions and guarantee safe, efficient, and environmentally friendly hydrocarbon operations.

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