DPR estimates Nigeria's oil reserves at 35 bn barrels

Apr 25, 2005 02:00 AM

Amid the controversy trailing the actual volume of Nigeria's oil reserves, the Department of Petroleum Resources (DPR), has said the country's hydrocarbon reserves made up of oil and condensates, currently stood at 35.254 bn barrels.
Total gas reserves stood at 187.12, said the DPR, the nation's oil industry monitors.

The controversy sparked by the downward review in Shell's global oil reserve claims, has left many industry analysts wondering of figures given by the Nigerian petroleum regulatory agencies, are correct. Shell is Nigeria's biggest oil producer. It is widely believed that the cut in the company's reserves affected a significant volume of Nigeria's reserve base.
Both the DPR and the Nigerian National Petroleum Corporation (NNPC) have however, maintained that the country's reserves were not in any way affected. According to the DPR Deputy Director, Mr Billy Agha, Nigerian Reserves are classified based on an established Reporting Format Which is known as "Standardization or Reserves Definitions, Classifications and Reporting Formats in Nigeria".

In a presentation at the 2005 Nigerian Oil and Gas Conference (NOG) held in Abuja, the DPR stated that in Nigeria, reserves are estimated volumes of oil, condensate, natural gas and natural gas liquids anticipated to be:
-- Commercially recoverable from known accumulations
-- Under existing economic conditions and government regulations.
“Reserves standards are in line with internationally acceptable definitions such as Society of Petroleum Engineers (SPE), World Petroleum Congress (WPC), Security and Exchange Commission (SEC), American Association of Petroleum Geologist (AAPG), and others,” said Agha.

Hydrocarbon reserves according to him, are classified into Proved, Probable and Possible.
Proven reserves are defined as quantities of petroleum (oil, condensate, gas) which analysis of Geological and engineering data can be estimated to be:
-- Commercially recovered
-- With reasonable certainty
-- From known reservoirs
-- From a given date forward and
-- Under current economic conditions, operating methods and Government regulations.

Probable reserves on the other hand are reserves that:
-- are less certain than proved reserves
-- Are designed to identify future reserve potential that has a high probability of success of being commercially produced
-- reserves attributed to proven enhanced recovery processes that are planned but not currently in operation in the field in question
-- incremental reserves based on geological and engineering data which indicates significantly more recoverable oil in place that can be classified as proved.

"In the late 1990s the Nigerian Government, in consultation with the oil industry, developed a vision for the year 2010 (Termed vision 2010), which set targets for production of 4 mm bpd and reserves of 40 bn barrels,” said Agha.
"Nigeria's oil and condensate has attained a high of 35.254 bn barrels. The contribution on terrain basis is as follows: Land 22 %, swamp 36 %, shallow offshore 36 % and deep offshore 6 %."

More than 17 companies according to the DPR, are currently working in the Nigerian Deepwater. Over 25,000 km and 40,000 sq km of 2-D & 3-D of seismic data have been acquired respectively. Thirty-four exploratory wells have been drilled so far with over seven huge oil/gas world class discoveries (Bonga, Bonga SW, Agbami/Ekoli, Erha, Akpo, Chota & Nnwa/Doro).
Over 3 bn barrels of crude oil and nearly 16.2tcf of gas have been discovered since the first deep offshore well was spudded in 1995.

Source: This Day
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