The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, on Monday disclosed that Nigeria’s gas reserves will last the next 94 years.
The NUPRC boss spoke at the opening of the 16th Nigerian Association for Energy Economics (NAEE) Annual International Conference in Abuja, themed: “Energy Evolution, Transition and Reform: Prospects for African Economies.”
Komolafe stated that Africa with its vast sources of renewable energy has the potential, with the right leadership, reforms and adequate financing, to easily transit to the use of other cleaner sources of energy in the nearest future
Nigeria, and indeed other African countries rich in hydrocarbon, Komolafe said, are gradually shifting their attention to the use of natural gas as a major source of energy, while continuing in the exploitation of the oil resources/reserves which for now remain the major sources of revenue for the government.
He explained that oil and gas will continue to guarantee energy security for Nigeria’s massive population estimated to be 200 million.
“With a reserve base of 36.97 billion barrels of oil and 208.83 trillion cubic feet of gas which represents 33 percent of Africa’s total gas reserves of 620 TCF, Nigeria can be described as a gas rich nation ranking number one in Africa in reserves with a life index of 94 years,” he added.
The commission’s chief executive stated that the endowment presents Nigeria in a dominant position in the entire Africa gas market, explaining that Nigeria has the potential to ensure sustained supply of natural gas across the sub-Saharan region of Africa, if the necessary financing and infrastructure are in place.
The Petroleum Industry Act, 2021 (PIA), Komolafe said, has brought about significant reforms in the Nigerian petroleum industry, noting that the Act has also engendered the much desired reforms aimed at ensuring the rapid development and effective production of Nigeria’s gas resources by providing very attractive fiscal terms for investors.
“For instance, the Act provides for lower royalty rate for domestic gas (2.5 per cent). To operationalise the Act, the commission has also developed key regulations and initiatives that will ensure accelerated gas exploration and development to deepen domestic use for industrialization and export opportunities for enhanced revenue generation,” Komolafe said.
