DPR plans expansion of crude oil reserves by 14 billion barrels

The Department of Petroleum Resources (DPR) has unfolded plans to expand Nigeria’s 36.9 billion barrels of crude oil reserves by 14 billion barrels and the country’s gas reserves by an additional 68 Trillion Cubic Feet (TCF).

It said the possibility of getting 14 billion barrels out of the 18 billion barrels in the works remains very high.

The DPR Director, Mr Sarki Auwalu, stated this when he received the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari and the top management team of the corporation in his office.

Auwalu disclosed that in addition to the recent increase of Nigeria’s gas reserves to 206 TCF, the DPR’s field analysis showed that the possibility of proving the new oil and gas finds were becoming higher and gradually moving from P3 to P2.

In oil industry reserve classification, Proven (P1) reserve is an estimate of recoverable volume with a probability of recovery greater than 90 per cent under present technical and economic conditions, while Probable (P2) reserve is an estimate of recoverable volume with chances of recovery equal to or above 50 per cent and less than 90 per cent.

In addition, Possible (P3) reserve is an estimate of recoverable volume with a chance equal to or above 10 per cent and less than 50 per cent of being economically and technically feasible to extract.

“Let me take this opportunity to inform the GMD and the entire top management of the NNPC that as of last year we were able to increase the proven gas reserve to 206 TCF. This year, we have looked at the reserves of gas and those reserves are in P3 and migrating to P2.

“We realised that over 68 TCF are in P3 and 75 per cent of it exists in P2 area, which is the production area. So there are several possibilities that this volume will be proven and we can increase and hit the 230 TCF before 2030.

“For oil, we have discovered P3 reserves in P2 area of about 18 billion barrels and 75 per cent of this 18 billion barrels exist in the P2 production area. So the potential for us to increase about 14 billion barrels is there, and we’re ready to declare this full increase to our own reserves,” Auwalu stressed.

However, he insisted that the nation’s reserves production ratio was still not enough and expressed the hope that the recent profit declared by the NNPC, it would open the floodgates for investors to come into Nigeria and put their monies in the industry.

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