Nigeria has reduced the approval timeline for restarting inactive oil wells as authorities move to boost crude production.
Eniola Akinkuotu, spokesperson for the Nigerian Upstream Petroleum Regulatory Commission NUPRC, told TheCable that the regulator is accelerating procedures and “cutting down timelines for issuing permits”, including approvals required to reactivate dormant wells.
“We are speeding up processes and reducing timelines for permit issuance. Each permit has its distinct timeline,” he said.
The development is intended to help Nigeria take advantage of elevated global energy prices and rising demand for alternative crude supplies.
According to a Bloomberg report published on Wednesday, the NUPRC is now granting permits within hours of application, citing sources familiar with the process who requested anonymity.
“With oil trading near $100 a barrel, Africa’s top producers are moving to capitalize on demand as buyers turn to suppliers such as Nigeria and Angola, away from the Middle East conflict,” the report reads.
“The West African nation has also fast-tracked approvals for evacuations and barges at production facilities and export terminals.”
A spokesperson at the regulator said “speedy approvals” were being granted “for all activities that could increase production”.
Bloomberg noted that the surge in applications has largely been driven by local oil firms seeking to return to previously inactive wells, supported by the regulator’s decision to shorten an approval process that previously took between 2 and 6 weeks.
Reactivating older wells is considered more cost-effective than drilling new ones, which typically require years of planning, with crude taking around 4 weeks to reach the surface after drilling.
“Nigeria’s production fell to 1.31 million barrels per day in February, the lowest level in 17 months, largely due to maintenance work at a 225,000 barrels a day production facility operated by Shell Plc,” the publication said.
“Output has yet to recover to peaks above 2 million barrels a day, limiting the country’s ability to capitalize on rising crude prices relative to its peers.
“The OPEC member averaged 1.34 million barrels a day in 2022, when oil surged to as much as $130 a barrel following Russia’s invasion of Ukraine.”
The report added that the regulator approved 500 permits in 2024 to reopen old wells, including those involving Heirs Energy and Seplat Energy Plc.
On April 1, Heineken Lokpobiri, minister of state for petroleum resources, announced that the federal government planned to begin implementing the drill or drop provisions contained in the Petroleum Industry Act.
Faridah Abdulkadiri
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