THE non-passage of the Petroleum Industry Bill (PIB) and the declining spate of oil and gas reserves have become a source of worry for the Department of Petroleum Resources (DPR) due to its negative impact on the economy.

The Director, DPR, Mr. Osten Olorunsola, disclosed this to the House Committee on Gas during its oversight functions visit to the agency in Lagos, on Friday.

Olorunsola said, in the last three to five years, there were no serious activities and investment in the oil and gas sector which he said affected the decline of the country’s oil and reserves.

Olorunsola said that non-passage of the PIB also contributed to the decline of the oil reserves, adding that it would take another five to six years to recover from the present state of decline.

“There is need to affirmatively invest in indigenous participation in the Nigeria petroleum industry. For the first time in many years, Nigeria’s oil and gas reserves are on the decline,” he said.

The director said that presently the oil production of the country stood at 2.5 million barrel per day, while gas production stood at 8.0 billion cubic feet per day with 5.2 billion from associated gas and 2.8 billion as non-associated gas.

He added that the country’s gas utilisation stood at 6.6 billion cubic feet per day, adding that gas flaring in the country stood at 1.4 billion cubic feet per day.

Olorunsola, however, said that gas flaring in the country has been reduced from 1.4 billion cubic feet to 1 billion cubic feet per day, adding that government is still battling with challenges of gas flaring in the country.

“We need to create more revenue from gas; we should monetise the domestic gas to develop the country. Nigeria has not commenced gas exploration which is the next step for the government to look into,” he added.

Comments (0)

Show/hide comments

Show/hide comment form

Name

Email

Website

Title

Comment

smaller | bigger

Subscribe via email (registered users only)

I have read and agree to the Terms of Usage.

Add Comment