Page 11 - AfrOil Week 33 2019

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NNPC targets China to boost crude oil reserves
Nigerian National Petroleum Corp. (NNPC) says strategic partnership and new investments in the upstream petroleum sector are essential for it to optimise the nation’s crude oil reserves and reach the oil production target of 3mn barrels per day (bpd) by 2023. Mallam Mele Kyari, the group managing director of NNPC, disclosed this today when the executive vice president of China National O shore Oil Corp. (CNOOC),LuYanJi,paidhimabusinessvisitat the NNPC Towers in Abuja.
e group managing director said there was need to improve the nation’s revenue profile through new investments in the petroleum sec- tor. He also commended CNOOC for its plan to expand its investment in the nigerian petro- leum industry and assured it of the corporation’s support.
“To have investment of $16bn in Nigeria is clearly an indication of your con dence in us. We have a target to grow production to 3m bpd by 2023, [and] to do that, we need partners like you. You can count on us because we have com- mon interests,” he stated.
In his remarks, the CNOOC vice president said Nigeria was one of his company’s largest investment destination, with investment outlays
standing at about $16bn. He called for NNPC’s support in securing the investments, adding that there was need for national oil companies (NOCs) to work closely together. He also dis- closed that CNOOC currently produces 800,000 bpd worldwide and aims to hit 1.2mn bpd, add- ing that Nigeria was one of the targeted places to actualize the target.
CNOOC started business in Nigeria in 2005. It currently has interest in Oil Mining Lease (OML) 130 in partnership with NNPC, Total and Petrobras.
NNPC, August 15 2019
in recent years, with a target set by the govern- ment of reaching 400,000 bpd by 2020.
“ is is our rst onshore discovery, and it gives us a lot of hope that we shall make more discoveries especially now that we are to award more blocks for oil exploration in the ongoing oil licensing round,” said Jean-Marc ystere-Tchic- aya, Minister of Hydrocarbons of the Republic of Congo.
e Delta de la Cuvette deposit covers 9,392 square metres and comprises four wells, the rst of which was drilled in March of this year. When fully exploited, the license could propel Congo as Africa’s third largest oil producer, ahead of Algeria and Libya.
Oyo discovery a “game
changer”forCongoandthe “ isis,ine ect,oneofthelargestAfricanoil
African continent
e recent onshore discovery made in the Delta de la Cuvette deposit in the Republic of Congo is a game changer for Congo and Africa. e dis- covery was announced on August 10 by SARPD Oil and PEPA, a Congolese consortium working as the operators of the block.
Early projections indicate that the discovered deposits could produce up to 359mn barrels of oil, or 983,000 barrels per day (bpd), from Con- go’s central province. is could in e ect quadru- ple Congo’s production, which currently stands at over 330,000 bpd, according to OPEC’s latest gures. Production has been steadily increasing
discovery in decades,” declared NJ Ayuk, execu- tive chairman of the African Energy Chamber and CEO of the Centurion Law Group. “Africa has been an exploration hotspot where major oil and gas discoveries have been made in recent years by international explorers. e Oyo dis- covery in Congo, however, is the result of indig- enous e orts made by Congolese companies. It speaks volumes to the value that local content development can create when local companies and entrepreneurs are given an opportunity to contribute to their industry. I want to urge the government to work with the industry to expe- dite the approvals for the necessary eld devel- opment e orts. is is a win for Congo and for Africa.”
The discovery is also a game changer for Congo’s energy scenario, with most oil and gas production currently coming from offshore elds. e Republic of Congo has been pushing for years to open up energy access to its cen- tral and northern provinces, notably through the planned 1,200-km pipeline between Pointe Noire and Ouesso. e exploitation of such large oil deposits in the centre of the country could open up a whole new energy frontier for Congo and the rest of the region.
e African Energy Chamber looks forward to seeing the full development of the licence, cre- ating jobs for Congolese people and opportuni- ties for Congolese companies and entrepreneurs to service one of Central Africa’s largest upcom- ing onshore developments. Such a discovery has the potential to spur considerable economic growth for Congo and its central and northern provinces, especially as the country continues to recover from a recent economic crisis stemming from plummeting oil prices.
Congo has 2bn barrels of proven oil reserves from about 20 elds being exploited and about 10 permits granted and waiting to be developed. Its proven gas reserves stand at 200bn cubic metres, according to the government, including 70bn of associated gas.
Africa Oil & Power, August 15 2019
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