‘Nigeria’s oil reserve may hit 40.05bn barrels by 2015’
Although, Nigeria had since 2010 been itching to raise its oil reserve to 40 billion barrels (bb), an international research agency said yesterday that the country will have to tarry a while to be able to actualize its reserve target. The agency said the country’s oil reserve will exceed the 40 billion target by 0.5 billion barrels by 2015. It also predicted that gas reserve will hit 5.95 trillion cubic metresbetween 2014 and 2016.
According to the agency, the country may experience a downward trend in gas reserve which it said might go down to 5.80tcm by 2021. The Business Monitor International (BMI), in its Nigeria Oil and Gas Report for first quarter 2013, said that oil production will hit 2.62 million barrel per day, as future projects are expected to play a major role in the proposed production growth.
“With several projects in the pipeline or due to come on-stream over the next few years, such as Usan (180,000bpd) and Egina (150,000bpd-200,000bpd), we expect Nigerian oil output to rise substantially over our forecast period to 2021,” it stated. The BMI however, noted that attempts to cut gas flaring in the country would boost the outlook for gas production.
The main trends and developments as highlight for Nigeria’s oil and gas sector includes: “BMI expects oil production to increase from an estimated 2.53million barrels per day (bpd) in 2011 to 2.62million bpd by 2021, as ambitious projects such as Usan (180,000b/d) and Egina (150,000b/d- 200,000b/d) come on-stream.
“Consumption of crude is forecast to rise at an annual average of 6.29 per cent rate between 2011 and 2021, boosted by anticipated strong GDP growth. We forecast consumption rising from an estimated 286,000bpd in 2011 to 549,000bpd by 2021,” it stated.
The BMI forecasts gas production increase from an estimated 34.71billion cubic metres (bcm) in 2011 to 82.61bcm by 2021, as the authorities and companies reduce the practice of flaring to start monetising associated gas resources.