Exploration
A total of 81 wells were drilled in 2020: 76 development wells and 5 exploratory wells. Within the period, crude oil proven reserves increased marginally by 0.1% while gas reserves reduced marginally by 0.2%. There were 6 active OPLs in the joint development zone between Nigeria and Sao Tome and Principe in 2020. There was however no exploration activity on those areas due to non-submission of work programme and budget by the operators.
See appendix 13
for details of activities in the JDZ.
Production
Nigeria produced 646,787.44mbbls of crude oil (and condensate) in 2020. It also produced 3,013,639.73mmscf of gas in the period. More details on production in the year can be found in Chapter 3 of the
NEITI 2020 Oil and Gas Industry Report.
The NUPRC publishes a close to real time oil production report
here.
This report shows crude oil and condensate volumes produced per stream. It also disaggregates values for blended and unblended condensate. As at the time of publishing the report was updated as of January 2022.
Production activities concentration
Crude oil and gas are currently produced from three sedimentary basins: the onshore Anambra, the offshore Benin (deep-water and ultra-deep-water) and the Niger Delta (shallow and deep-water basins). There are varied types and levels of operation in ten of Nigeria’s thirty-six states (Abia, Akwa Ibom, Bayelsa, Cross Rivers, Delta, Edo, Imo, Lagos, Ondo, and Rivers). There is also offshore activity in the Bight of Bonny, Bight of Benin, and the Gulf of Guinea. Table 1 (Disaggregation by production and region) - Appendix 18 of the main report shows location of each producing OML.
Figure 1: Map of Nigeria showing sedimentary basins
Source: NEITI 2013 oil and gas report
Estimated value for crude oil produced was US$26.939billion for 2020. The production data was supplied by the defunct DPR. The crude oil monthly Average Selling Price of US$41.65 per barrel was computed using the monthly total sales data supplied by COMD. The total estimated production value was arrived at, by multiplying the monthly volumes with the average monthly price for the year.
It also produced 3,013,639.73 mmscf of gas valued at US$9.222 million in the period. In the domestic market, there are different prices for the sale of gas depending on the purchaser from NGC. The price per mscf for power generation was $1.00, for commercial - $3.06, while as feedstock (industrial), i.e., Notore price was $0.689 and ALSCON was $0.25.
Therefore, to estimate the total value of gas produced in Nigeria, the rate for commercial buyers was used to compute value for utilized gas, re-injected gas, gas flared and unaccounted gas. Gas produced is utilized for sales, used as fuel gas, re-injected, liquefied and flared into the atmosphere. Federation equity gas sale was made by NNPC and was categorized as export gas. NNPC routinely publishes lifting records of crude oil, condensates and provisional gas utilization data monthly on their
corporate website.
There was no production from the joint development zone between Nigeria and Sao-tome and Principe in the period. For further details on gas production, lifting and sales see chapter 2 of the
NEITI 2020 Oil and Gas Industry Report.
