FG will add 900,000 bpd to oil production by restoring shut-in oil wells, says NUPRC

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it is working to revive shut-in oil wells.

To shut in a well is to close off a well so that it stops producing.

Speaking on value optimisation in the upstream petroleum sector at a recent event, Gbenga Komolafe, chief executive officer (CEO) of NUPRC, said the commission was focused on regulatory initiatives aimed at reviving declining wells.

“As part of our strategy for value optimization and increased production from our national oil and gas reserves, the commission has focused on regulatory initiative aimed at reviving declining wells through enhanced oil recovery approach,” he said.

Komolafe added that the commission is working with operators to identify candidate wells and appropriate interventions that would lead to increased production.

“In addition, the commission is focusing on shut-in wells which can be revived. In pursuance of this, the commission inaugurated a committee on June 23, 2022, to conduct industry-wide study on reactivation of shut-in strings,” he said.

“The committee has submitted its report, and includes recommendations categorised into ‘quick wins’, medium- and long-term initiatives that will enhance national oil and gas production volumes.”

The NUPRC boss said findings from the report revealed that “over 900,000 barrels of oil per day can be earned from the quick win interventions while the medium- and long-term initiatives could potentially add 1.2 million barrels of oil per day if properly and fully implemented”.

He said the total number of strings that need to be revived is also known and “we have commenced engagement with the relevant operators to operationalise the initiative”.

“We have also completed the 2020 marginal field bid round and issued fifty (50) petroleum prospecting licenses (PPLs) to deserving awardees. It is expected that with the existing discoveries in the awarded fields, early field development plan (FDP) would be pursued by the awardees leading to incremental oil and gas production,” Komolafe said.

“On its part, the commission is facilitating timely approvals for expedited re-entry and early production. 

“The estimated incremental production from the awarded fields is approximately 58,000 bpd and 87mmscf/d.

“In the short/medium term, we expect an estimated incremental volume of 461,000bpd and 565mmscf/d from new wells and well re-entry.

“In the long term, we expect an estimated incremental volume of 162,000bpd and 868mmscf/d from FDPs which have been approved and are at various stages of execution.”