The Department of Petroleum Resources (DPR) yesterday raised alarm over declines in the country’s oil and gas reserves, saying there has been depletion in activities and investments in that sector.?
The DPR Director Mr.OstenOlorunsola? who made this known to the House Committees on Gas during their oversight functions the agency in Lagos ,said in the last three to five years, there were no serious activities and investment in the oil and gas sector.
Arguing that that neglect affected the decline of the country’s oil and reserves Olorunsola said that non-passage of the Petroleum Industry Bill (PIB) also contributed to the decline of the oil reserves, adding that it will take another five to six years to recovers from the present state of declines.
According to him, “There is need to affirmatively invest in indigenous participation in the Nigeria petroleum industry. For the first time in many years, Nigeria’s oil and gas reserves are on the decline,’’ .
The director said the oil production of the country presently stood at 2.5 million barrel per day while gas production stood at 8. 0 billion cubic feets per day which 5.2 billion was from associated gas and 2.8 was non-associated gas.
He explained that the country’s gas utilization stood at 6.6 billion cubic feets per day, adding that gas flaring in the country stood at 1.4 billion cubic feets per day.
He said that gas flaring in the country has been reduced from 1.4 to 1 billion cubic feets per day, adding that government is still battling to challenges of gas flaring in the country.
“We need to create more revenue from gas; we should monetised the domestic gas to develop the country. Nigeria has not commenced gas exploration, which is the next step for the government to look into,’’ he added.
Harping on the challenges, Olorunsola said that there is no robust legislative and commercial frame works for gas as in oil, adding that there too much of oligopoly that that is faced with the gas master plan, adding that gas flare down progress is slow.