According to Dr. Austin Avuru, the Chairman AA holdings, Nigeria would need a sum of $7.6 billion to recover oil production to 2.1m/bpd by 2025 from the present 1.3m/bpd as of September. He noted that this will help in drilling about 426 wells with 45 rigs to restore oil production in the country, which can help achieve a result of 2.1million barrels per day, and also bolster the country’s economy by the year 2025.
Avuru made this remark during the 41st Nigeria Association of Petroleum Explorationists (NAPE) annual international conference (AICE) Pre-conference, yesterday, themed: “Unlocking Nigeria’s remaining energy potential to fuel economic growth and diversification: opportunities and challenges.”
He also emphasized that Nigeria is using less oil and gas for energy and relying more on renewable sources like solar and wind. These changes could mean that oil and gas make up only 20% to 40% of the energy mix by 2060, while renewables increase to about 60%. The demand for oil could drop to as low as 30 million barrels a day by 2050, but more likely it would be around 55 million barrels a day instead of the current 103 million.
However, Avuru said that because current production levels are falling quickly, we need to invest a lot more in new oil and gas exploration to meet the demand. He said maximizing gas production could potentially result in a supply of three to four billion cubic feet (BCF) to the domestic market, projecting that Nigeria should achieve an output of three million bpd thereby reaching it peak.
James Makinde, from Seplat Energy PLC, also discussed the efficient use and commercialization of gas infrastructure in Nigeria. He warned that if the country continues with its current approach, there will be a shortage of 3.1 billion cubic feet of gas per day in the market by 2030. This shortage would last for 70 years.
According to him, The OPTS/IPPG study report shows that the first 10 projects in the Decade of Gas initiative will bring significant benefits to Nigeria. These include $14 billion in foreign investment, $12 billion in revenue for the government from gas royalties and taxes, and the creation of two million jobs in the gas industry.
He said that investing in gas infrastructure would provide energy that is cheaper and more dependable. However, he urged the government to create a favourable environment to attract private sector participation. This includes offering incentives, implementing the Petroleum Industry Act, and resolving any confusion among regulators.