NPDC targets equity production of 500,000 bpd by 2020

Published by

Posted on October 13, 2017

The Federal Government, the through Nigerian Petroleum Development Company (NPDC), is targeting equity production of 500,000 bpd by year 2020.

The Managing Director of NPDC, Mr. Yusuf Matashi, who disclosed  this  at the ongoing Nigerian Content Workshop in Owerri , Imo State, said that it is possible for Nigeria to achieve this target if the local content regime is taken seriously.

Matashi noted that  in order to meet the reserve growth of 40 billion barrels in vision 2020, indigenous E&P companies have a big role to play.

For this reason, he said  NPDC is partnering with some industry players and have formed Assets Management Teams (AMT) to achieve this.

In his paper, “Prospects and Challenges of Indigenous E&P company,” he said the challenges facing the sector is lack of funding because it is capital intensive, adding that other major challenges includes, inability to access capital market, Professional knowledge gaps, dealing with local communities, insecurity; crude oil theft and  Pipeline Vandalism.

He further stated that there are issues of low appetite for long term investment and loss of  jobs in the industry discouraged full participation.

As a way to tackle the challenges, he said, there is the need to strengthen financial bases of local banks to support E&P activities.

The NPDC boss added that there should be collaboration between E&P companies in terms of equipment and process standards.

“Partnerships among Indigenous E&P companies should be encouraged for better performance, share risks with other E&P companies by having common infrastructures should encouraged and community contractors can be engaged to protect the pipelines and other assets  ,” he explained.

On the achievement of NPDC since he took over, he said the  grown assets to 2bn bbl and 10 tcf oil and gas reserves respectively; equity oil and gas production of 180kbbl and 700MMscfd was achieved with 100% Nigerian workers.

He explained that this would have not be possible without the help of Local Content Development Act which came to be in 2010.

He said there is the need to grow in-country capacity and capability which will  led to greater prospects for indigenous companies.

Also, speaking at the event, the Managing Director of New Planet Project Limited, Mr. Bunmi Tunji-Ojo said that in 2010, the Nigerian Oil and Gas Industry Content Development Act (NOGICD) was enacted into law to promote a framework that guarantees active participation of Nigerians in oil and gas activities without compromising standards.

He explained that the policy also focuses on the promotion of value addition in Nigeria through the utilization of local raw materials, products and services in order to stimulate growth of indigenous capacity.

According to him, Federal government was optimistic that the policy will result in steady measurable and sustainable growth of Nigerian content throughout the oil and gas industry.

He noted that despite the enactment, the much anticipated growth of indigenous capacity has not translated into an improved development because of the technological limitations of the indigenous players in the industry as well as the inadequate level of compliance to the act in the industry, adding that this development posed some challenges to all stakeholders toward the full implementation of the policy.


About the Author


Subscribe and receive the following...

  • World News Updates
  • Latest News on Trade, Commerce & Investments
  • Latest Entertainment, Celebrity News & Gossips