The Federal Government has emerged with a new National Petroleum Policy, targeted at bringing about restructuring, new legislation and value addition in the oil and gas industry.
The policy, which has already been approved by the Federal Executive Council, defines the strategy of the government with respect to Nigeria’s oil resources.
The implementation of the policy, which envisaged that the joint ventures would produce about 67 per cent of Nigeria’s output, is expected to culminate in increasing the nation’s oil production from about 2.2 million bpd to 3.0 million bpd in 2017, before dropping by 2.0 million bpd in 2026.
The policy indicated that “total production is expected to be: Gas: around 46 tcf; Oil: around 10 billion bbls.
Unless there are additions to reserves and those reserves are brought into production, Nigeria can expect to see absolute declines in production from around 2020.