Nigeria’s Department of Petroleum Resources (DPR) has announced that it is developing a Maximum Economic Recovery (MER) strategy to maximize the value of its oil and gas resources.
During a keynote address at the 2021 Society of Petroleum Engineers (SPE) Nigeria annual International Conference and Exhibition (NAICE) yesterday in Lagos, the Director, DPR, Sarki Auwalu, said the decision was made to ensure an in-depth review of the industry’s status.
The industry initiative, according to Auwalu, is one of the results of the work of the National Oil and Gas Excellence Centre (NOGEC) in Lagos, which was launched by President Muhammadu Buhari in January.
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.