Reforms driving Nigeria's oil, gas output growth, minister says

Paula Dittrick
OGJ Senior Staff Writer

HOUSTON, Sept. 28 -- Nigeria's Parliament is expected soon to pass into law the Petroleum Industry Bill, Nigeria’s Minister of Petroleum Resources Diezani Alison-Madueke told participants at the Rice University Baker Institute for Public Policy in Houston on Sept. 27.

"We expect in a few short weeks it will be promulgated into law," Alison-Madueke said of the bill while she met briefly with reporters after giving a keynote speech at a conference about emerging carbon management policies.

"In Nigeria, over 50 years’ experience in the oil and gas industry continues to reveal the complex dynamics of balancing global energy security, domestic economic growth, climate, and environmental considerations,” she said during her speech.

Regarding oil and gas reforms in Nigeria, Alison-Madueke said the government is getting closer to outlawing flaring natural gas, although she listed no specific time for when a complete ban is expected to be implemented.

“We are transitioning from gas flaring to gas utilization,” she said, citing the Agip Okpai combined-cycle power plant as an example. In Nigeria, associated gas often is considered to be a waste product of oil production rather than an economic resource.

Amy Myers Jaffe of the Baker Institute told OGJ that market incentives to price associated gas work best when it comes to encouraging countries like Russia and Nigeria to reduce the volumes of gas vented and flared. Russia and Nigeria are the biggest gas-flaring countries worldwide.

In 2002, the World Bank started a public-private partnership initiative called Global Gas Flaring Reduction of which Nigeria is a member. The National Oceanic and Atmosphere Administration estimated that during 1994-2008, the total amount of gas flared worldwide corresponded to 70% of total US greenhouse gas emissions during 2007.

In a Baker Institute study entitled “Gas Flaring and Venting: Extent, Impacts, and Remedies,” three researchers said flared gas volumes in Nigeria have decreased somewhat although most of that decrease is likely due to decreased oil production caused by civil unrest.

“Both regulatory enforcements and financial incentives are proving insufficient in Nigeria,” said the flaring study. “Several gas utilization projects are under way; however, the completed projects have not been as successful in reducing gas flaring volumes as claimed. In Nigeria, less complicated and lower cost technologies, such as LPG and gas-to-power, could be put in place to utilize associated gas locally.”

Most of the oil fields involved with gas flaring are close to poor communities that desperately need energy sources, concluded the study, written by Birnur Buzcu-Guven, Robert Harriss, and Donald Hertzmark. Buzcu-Guven is a research scientist with the Houston Advanced Research Center (HARC) and the Baker Institute, Harriss is HARC president and chief executive officer, and Hertzmark is a consultant.

Carbon-neutral plans
During her Houston visit, Alison-Madueke said the Nigerian government has a goal of making Nigeria carbon-neutral by 2025. Nigeria, which signed the Kyoto Protocol, recently developed a draft policy to address climate change.

Nigerian officials aggressively are working to promote a growing gross domestic product, and Nigeria aspires to become one of the world's top 20 economies by 2020, she said.

"The energy consumption that will be associated with such growth cannot be overemphasized,” Alison-Madueke said. “To achieve and sustain the GDP growth aspiration, we are on course to grow our crude oil reserves to and maintain it at about 40 billion bbl through 2020.”

She called for a “more effective linkage” between the industry and government to help drive Nigeria’s GDP through increased local content and participation.

Currently, Nigeria estimates it has 37 billion bbl of oil reserves and a production capacity of 3 million b/d, she said. The nation has proved gas reserve of 187 tcf and another estimated 600 tcf of undiscovered gas potential, she said.

“Experts are of the opinion that with the estimated undiscovered potential, Nigeria could easily be within the world's top three in gas reserves,” she said.

Contact Paula Dittrick at

Related Articles

EIA: US oil output fell 50,000 b/d in May

07/07/2015 Total US crude oil production dropped 50,000 b/d in May compared with April and is expected to continue falling through early 2016 before growth re...

BLM approves ROW for Elko gas pipeline expansion project

07/07/2015 The US Bureau of Land Management’s Tuscarora, Nev., field office signed a decision record approving a right-of-way for Paiute Pipeline Co.’s (PPC) ...

Obama urged by IPAA president to lift ban on US crude exports

07/07/2015 Commending the administration for its actions allowing some condensate to be exported as a petroleum product, Independent Petroleum Association of ...

AER shuts in 16 Murphy Oil sites in Peace River region for noncompliance

07/07/2015 Alberta Energy Regulator said it has shut in or partially shut in 16 sites operated by Murphy Oil Co. Ltd. in the Peace River region. The sites wer...

MARKET WATCH: NYMEX, Brent oil prices take dive on world oil oversupply concerns

07/07/2015 US light, sweet crude oil prices plummeted more than $4/bbl on the New York market July 6, marking a 5-month low, while Brent crude oil prices on t...

WAFWA: Aerial survey finds lesser prairie chicken population grew

07/06/2015 A recent range-wide aerial survey found the lesser prairie chicken population rose 25% from 2014 to 2015, the Western Association of Fish & Wil...

Buru awarded onshore Canning licenses

07/06/2015 Buru Energy Ltd., Perth, and Mitsubish Corp. have been granted two production licenses for Ungani oil field in the onshore Canning basin of Western...

Cenovus sells royalty business for $3.3 billion

07/06/2015 Cenovus Energy Inc., Calgary, inked an agreement to sell its wholly owned subsidiary Heritage Royalty LP to Ontario Teachers’ Pension Plan for gros...

CERI: Energy, operational efficiencies possible in Canadian oil, gas

07/06/2015 Measures can be taken by operators in the expanding resource-intensive Canadian oil and gas sector to improve both energy efficiency and operationa...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected