Nigeria has launched oil production from a new field in the Niger Delta, aiming to increase its crude output by 40,000 barrels per day (bpd) by the end of May.
This development marks a significant step for Africa’s leading oil producer in meeting domestic energy needs and driving economic growth.
The upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC), NNPC Exploration and Production Limited, along with Natural Oilfield Services Ltd (NOSL), a subsidiary of Sterling Oil Exploration & Energy Production Company Ltd (SEEPCO), announced on Sunday the successful commencement of oil production at Oil Mining Lease (OML) 13 in Akwa Ibom State.
Production began on May 6 with an initial output of 6,000 barrels per day and is expected to ramp up to 40,000 bpd by May 27, 2024, according to an NNPC statement.
“This first oil from OML 13 is significant for Nigeria as it contributes to the country’s efforts to increase its oil production capacity,” NNPC stated. “This is crucial for meeting domestic energy needs and driving economic growth.”
In a bid to further boost its oil production, Nigeria recently launched a new oil and gas licensing round, inviting bids for up to 12 onshore and offshore blocks.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the start of the 2024 licensing round at the Offshore Technology Conference (OTC) in Houston, Texas, promising transparency in the bidding process.
International oil majors have reduced their presence in Nigeria’s energy sector in recent years due to concerns over transparency, oil theft, and frequent pipeline damages. These issues have led to frequent declarations of force majeure on crude oil exports.
In recent months, Nigeria has taken active steps to address these concerns. Gbenga Komolafe, the chief executive of NUPRC, stated in Houston that this year’s licensing round is expected to be highly successful.
He emphasized that the round marks a significant stride towards increasing the nation’s oil and gas reserves through vigorous exploration and development, enhancing production, and expanding opportunities for gas utilization.
This renewed focus on boosting production and ensuring transparency in the sector is expected to generate more value for Nigeria’s economy, which remains heavily reliant on oil exports.