Crude oil production from Nigerian indigenous producers can reach 250,000 barrels per day (bpd) if they can summon technical capacity and fund challenges by year 2015.
Speaking at this year’s industry luncheon talk organized by the Centre for Petroleum Information (CPI) in Lagos at the weekend, the Managing Director of Seplat Petroleum Development Company, Austin Avuru said if Nigerian indigenous companies could summon the courage and face such challenges as security, funding, joint venture, and technical capacity issues, they could hit as much as 250,000 capacity by 2015 from the current daily output of between 80,000 barrels and 100,000 barrels.
He said the local producers could also see their spending risen to $1.5 billion in 2015 against the current local industry spending of between $400 million and $500 million.
Avuru said since 2005 when crude oil production from local oil companies hit its peak of 100,000 barrels per day with Conoil alone accounting for over 60 per cent, output per day from the indigenous oil companies have been fluctuating.
He said currently, productions from seven oil companies accounts for 22,000 barrels per day, adding that none of the companies have been able to hasten steady production for 10 years.
He said that apart from Conoil, most independent companies are of a single field development with little or no prospect for sustainable growth in production
“In 20 years, 52 independent companies have been licensed and awarded blocks without any growth on local output. This is not good news but we can summon the challenges with ability to source for fund as well as technical capacity. If these can be achieved, output from local oil producers will be accelerated and this can further renew onshore exploration, appraisal and development campaign as well as gas development,” he said.
Avuru said some provisions in the Petroleum Industry Bill as well as voluntary asset rationalization by the multinationals would also fuel opportunity for growth of indigenous oil producers.
He said SEPLATs successful transaction of acquisition with Shell joint venture has opened a new chapter in the industry, adding that about five other companies are currently in such arrangements with major oil companies.
