The Federal Government is targeting more than a twofold increase in Nigeria’s oil and gas reserves through fresh exploration activities in deepwater fields and other unexplored areas, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has said.
Lokpobiri disclosed this on Monday at the 44th Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists in Lagos, where he called on oil and gas companies to increase investment in exploration and drilling.
He said Nigeria has significant hydrocarbon resources yet to be discovered, stressing that sustained exploration is necessary to expand the country’s reserves and support future production.
The minister warned that Nigeria could not continue to depend on oil discoveries made several decades ago to sustain its production levels, urging operators to intensify drilling campaigns and strengthen local technical capacity.
He revealed that the number of active drilling rigs in the country had increased from about 10 in August 2023, when he assumed office, to more than 50.
He added that daily oil production, including condensates, had risen from approximately one million barrels to more than 1.8 million barrels.
According to Lokpobiri, continued drilling and exploration would help uncover new resources and provide the foundation for sustainable oil and gas production.
He also called for increased investment in frontier exploration, noting that the Petroleum Industry Act (PIA) provides a dedicated fund to support exploration in underdeveloped areas.
The minister expressed confidence that Nigeria’s deepwater resources could significantly increase its reserves, potentially more than doubling current levels in the coming years.
However, he cautioned that large oil reserves do not automatically translate into economic prosperity, citing Venezuela’s more than 300 billion barrels of oil reserves as an example.
He stressed that Nigeria must develop discovered resources, bring them into production and sell them to generate economic value.
Lokpobiri further disclosed that the oil and gas sector contributes about 85 per cent of Nigeria’s foreign reserves, estimated at $56bn.
Meanwhile, the Special Adviser to the President on Energy, Olu Verheijen, said increased oil and gas production must translate into industrial growth, job creation and improved living conditions for Nigerians.
She noted that Nigeria must create favourable investment conditions to ensure that discovered resources are developed commercially.
Verheijen cited the Ima gas field, discovered more than 50 years ago but only recently reaching a final investment decision, as an example of how poor investment conditions can delay the development of valuable energy resources.
