The Department of Petroleum Resources (DPR) has said it is formulating a Maximum Economic Recovery (MER) strategy for Nigeria to attain maximum value from its oil and gas resources.
The Director, DPR, Sarki Auwalu, during a keynote address at the 2021 Society of Petroleum Engineers (SPE) Nigeria yearly International Conference and Exhibition (NAICE) yesterday, in Lagos, said the decision was taken to ensure an in-depth assessment of the status of the industry.
Auwalu said the industry initiative was one of the outcomes of the work of the National Oil and Gas Excellence Centre (NOGEC), Lagos inaugurated in January by President Muhammadu Buhari.
He said: “This is to guarantee the actualisation of sustainable resource optimisation and the economic benefits arising therefrom.
“The framework for this industry action plan outlines six pillars or building blocks.”
Auwalu said the pillars include reserves maturation and production optimisation, exploration and resources maturation, improved oil recovery and enhanced oil recovery, implementation of asset stewardship, performance evaluation and rewards risk management.
According to him, the draft framework has been shared with the industry, including professional associations like the SPE and the National Association of Petroleum Explorationists.
He said this was in preparation for an industry collaborative workshop to co-develop and enunciate this strategy for immediate execution.
“We count on the contributions and buy-in of all stakeholders on this crucial national assignment for our overall benefit and industry sustainability, “he said.
Auwalu said Nigeria was rising to the occasion as the ‘trigger’ for continental growth and economic transformation using its oil and gas resources to drive value for national development.
He said the DPR would continue to foster innovative ideas and create opportunities for investments and sustainability in the industry.
On his part, the Minister of State for Petroleum Resources, Timipre Sylva affirmed government’s resolve to optimise the country’s abundant gas resource for transition to low carbon energy sources.
Sylva said: “The scenario being projected by some energy experts is that energy transition to low carbon energy sources would make the world a better living place with a cleaner climate. I believe so too, likewise the Government of Nigeria.”
He, however, faulted the assumption that the transition to the use of low carbon energy solutions must happen simultaneously across the globe.
The minister noted that those pushing for the move failed to take into account the different socio-economic, political and developmental peculiarities of individual nations.
“Let me state categorically that our approach towards the climate-change-net-zero-emission debate is to optimise the use of our abundant gas resource domestically as a transition fuel option towards meeting our Nationally Determined Contributions on climate change.
“As a government, we are determined to encourage more penetration of natural gas and its derivatives for domestic utilisation, power generation, gas-based industries and propulsion in all aspects of the national economy.
“This would in a fundamental manner address the great challenge posed by volatile oil market, the environmental issues and public health concerns,” said Sylva.