Lagos, Nigeria — The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has expedited the process of restarting inactive oil wells to enhance crude production, according to Eniola Akinkuotu, the NUPRC spokesperson. The regulator is now granting permits within hours, a stark contrast to the previous 2 to 6-week approval process.
This move is part of Nigeria’s strategic response to capitalize on the elevated global energy prices and the increasing demand for alternative crude supplies. The West African nation is aiming to benefit from the shift in buyer preferences away from the Middle East due to ongoing conflicts.
In addition to speeding up the permit issuance, Nigeria has also streamlined approvals for evacuations and operations at production facilities and export terminals. Reactivating older wells is seen as a more cost-effective solution compared to drilling new ones, which can take years of planning and have a longer crude extraction timeline.
Nigeria’s oil production dipped to 1.31 million barrels per day in February, the lowest level in 17 months, primarily due to maintenance work at a Shell Plc-operated facility. The country’s output has yet to rebound to levels above 2 million barrels per day, limiting its ability to fully capitalize on the rising crude prices.
The NUPRC has approved 500 permits in 2024 for the reopening of old wells, including those involving Heirs Energy and Seplat Energy Plc. Minister of State for Petroleum Resources, Heineken Lokpobiri, announced on April 1 the government’s plan to implement the drill or drop provisions of the Petroleum Industry Act. The government is expected to provide further details as it continues to enhance crude production processes.
Source: arise
