NUPRC Will Use Advanced Recovery Techniques To Unlock Stranded Oil & Gas Resources–Komolafe

The Nigerian Upstream Petroleum Regulatory Commission has said it is embracing and adopting new technologies and advance recovery techniques to unlock some identified stranded or bypassed oil and gas resources in Nigeria.

The move, according to the Chief Executive, Gbenga Komolafe will assist in increasing the nation’s reserves and ramp up production.

Komolafe said these while delivering a keynote address at the 2023 Energy Year Nigeria 2023 Book Launch and Awards Ceremony with the theme, “Innovation in the Nigeria oil and gas industry upstream: A catalyst for growth and development in Nigeria”

He said the Commission has commenced the use of smart completion to boost production from different reservoirs to increase production.

He explained further that collaboration is key to fostering innovation, noting that the government, regulatory bodies, oil and gas operators, service companies and other stakeholders, must work together to create an ecosystem that promotes idea sharing, transparency and mutual support.

“We must encourage the establishment of partnerships, consortiums and joint ventures, to tackle complex challenges collectively.

“The Commission is committed to regulatory excellence. clear and effective regulations will provide the necessary framework for innovation to thrive, while ensuring safety, transparency and accountability in the industry.

“The Nigerian Upstream Petroleum Regulatory Commission is dedicated to promoting an enabling environment that encourages investments, safeguards the interests of all stakeholders and encourages responsible exploration and production practices.”

Komolafe appreciated the organizers of the event for their commitment in creating value and opportunities which have delivered first-hand intelligence on emerging energy markets to helping stakeholders in the energy sector from across the continents to make better business decisions.

According to him, the Energy Year through its enlightening publications has consistently provided a holistic overview of the entire energy value chain in emerging markets.

He said, “Indeed, energy transition has resulted in the defunding of oil and gas projects. The International Energy Agency’s (IEA’s) latest World Energy Investment report indicates that investment in clean energy technologies is significantly outpacing spending on fossil fuels.

“The report also revealed that the annual global investments in clean energy sources and technology specifically relevant to the energy transition increased by 31 percent (31%) between 2021 and 2022, representing the largest annual investment increase since 2010.

“Governments and energy companies are supporting major R&D and demonstration projects in key areas such as low-emission hydrogen-based energy, lithium-ion and lithium-free batteries for electric vehicles, CCUS and other critical energy technologies.

“This global energy transition program would undoubtedly affect Nigeria’s Gross Domestic Product (GDP), which stands at $477.39bn for 2022, because the economy depends largely on the revenues from the oil sector.

“Between 2014 and 2022, about 74 per cent CAPEX has been lost due to defunding of the fossil fuel. The defunding of the fossil fuel impacts negatively on production with direct implication on the federation revenue for an oil dependent economy like Nigeria.”

According to him, the global momentum and impact of energy transition makes it instructive for stakeholders in the oil and gas sector, to challenge the current thinking and evolve innovative measures to mitigate the confounding effect of energy transition.

The NUPRC Boss told the gathering that the industrialisation capacity in the oil and gas sector is weak purely due to energy gap and low midstream derivatives and feed stock for industrial development.

“An economy with low industrialisation is a weak economy,” he added.

ENDS