Experts during a panel session at the 55th Anniversary of the Oil Producers Trade Section (OPTS), an arm of the Lagos Chamber of Commerce and Industry (LCCI), in Lagos, said the efforts to attain 2.5 million barrels per day (mbpd) in crude oil production by the Federal Government will be unrealistic if aggressive exploration is not encouraged, The Nation reports.
They noted that there are very competitive fiscals from other African countries and capital moves to an environment where they are welcome. Therefore, Nigeria should not foot-drag in its determination to maximise value from its hydrocarbon deposits.
They said if there is no dependable plan to replace used reserves, even with the attainment of 2.5 million barrel daily, the production will drop abysmally with time because it is not sustainable. According to them, some new oil firms do not have exploration departments as required, such companies are only interested in production.
OPTS Chairman, MD, Shell Petroleum Development Company (SPDC) and Chairman, Shell Companies in Nigeria, Mr. Osagie Okunbor, said; “The nation’s legacy reserve base has not been increased in the last 20 years. With 30 billion barrels reserves base and one billion barrels per year depletion, in 30 years the reserves base will be zero.”