May 27, 2024
Oil production optimization critical to economic recovery
DPR generates N2.24trn in 8 months, targets N5trn in December
– By Godswill Odiong

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The Department of Petroleum Resources (DPR) has said that optimizing Nigeria’s oil production processes remains a critical factor in the nation’s economic recovery drive and get the full benefits of the country’s resources.

A statement in Abuja by the General Manager, Public Affairs of the organization, Mr. Paul Osu, quoted the Director and Chief Executive Officer of the organization, Mr. Sarki Auwalu, as having made the comment during a meeting with technical teams from the oil and gas industry in Nigeria.

Aside from production optimisation, Auwalu identified five other important pillars to its strategy for Maximum Economic Recovery (MER) for the industry, stressing that the objective of the strategy was to maximise the expected net value of economically recoverable petroleum from Nigeria’s acreages.

He listed items in the strategy to include reserves maturation and production optimization, exploration and resources maturation, as well as Improved Oil Recovery and Enhanced Oil Recovery (IOR/EOR) implementation in the industry.
According to him, the list also includes asset stewardship, performance evaluation and rewards, as well as risk management which would help protect investments, business continuity and sustainability, improved collaboration and cost reduction in the oil and gas sector.

Auwalu reiterated that the federal government, through the MER strategies, was targeting to increase the nation’s oil reserves from 36.91 billion barrels to 50 billion barrels in the short to midterm, as well as targeting increasing Nigeria’s proven gas reserves from 206.53TCF to 250TCF.

He stated that as part of the MER strategy, the DPR had initiated an annual award for companies, projects, or individuals who have added value to the Nigerian terrain through improved and enhanced recovery of the country’s oil and gas resources.

“As part of the government’s obligation, it will encourage investment in Nigeria by creating a stable, competitive and predictable business environment. The government will encourage existing technologies to be deployed to full effect to maximize the full economic recovery of Nigerian resources.

“The government will also promote active exploration for new oil and gas resources in Nigeria and facilitate timely and effective data sharing,” he stressed.
The director said that with the implementation of the plans, it would ensure

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