Association for Free Research and International Cooperation

Nigeria: About 20 billions barrels of oil may be discovered this year

Global discoveries of conventional oil and gas could jump to 20 billion barrels of oil equivalent this year as an industry-wide recovery in exploration activity continues to ramp up, research group Wood Mackenzie has said.

Indeed, the report noted that southern and western Africa will see resurgence in offshore exploration, as well as other South American countries like Brazil, and Mexico.

Already, President Muhammadu Buhari on Saturday, flagged-off the official commencement of crude oil search in the Kolmani Well River-II, located near Barambu, Alkaleri Local Government Area of Bauchi State. Buhari also declared that the Federal Government would intensify oil exploration efforts in all frontier basins including Chad Basin, Gongola Basin, Anambra Basin, Sokoto Basin, Dahomey Basin, Bida Basin and Benue Trough.

The President said the exploration for crude oil was part of his administration’s promise in terms of growing Nigeria’s economy, adding that the government had worked hard to fulfill its promises.In 2018, exploration drilling discovered at least 10.5 billion boe in conventional resources, of which 40% was oil and 60% was gas, according to the UK-based consultancy.

Although still the lowest for “several decades”, Wood Mac said it expects the 2018 figure to increase due to further disclosure and appraisal drilling, noting that historic resource “creep” from initial year-end estimates has averaged around 40% over the last decade.

But with a number of key exploration wells targeting new plays and large volumes in 2019, Wood Mac is expecting global discoveries this year to add around 15 billion-20 billion boe of new conventional resources.

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