LAGOS, NIGERIA — The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has significantly reduced the approval timeline for reactivating inactive oil wells, a move aimed at bolstering crude oil production. Eniola Akinkuotu, spokesperson for the NUPRC, disclosed that the regulator is expediting permit issuance, including those necessary for reactivating dormant wells. The streamlined process is part of an effort to capitalize on the heightened global energy prices and the increasing demand for alternative crude supplies.
According to a Bloomberg report, the NUPRC is now granting permits within hours of application, a substantial change from the previous 2 to 6-week approval process. This acceleration is driven by local oil firms seeking to reactivate previously inactive wells, supported by the regulator’s decision to streamline the approval process. Reactivating older wells is considered more cost-effective than drilling new ones, which typically require years of planning.
Crude production in Nigeria dipped to 1.31 million barrels per day in February, the lowest level in 17 months, largely due to maintenance work at a Shell Plc-operated facility. Output has yet to recover to peaks above 2 million barrels per day, limiting the country’s ability to capitalize on rising crude prices. The NUPRC has approved 500 permits in 2024 to reopen old wells, including those involving Heirs Energy and Seplat Energy Plc.
On April 1, Heineken Lokpobiri, Minister of State for Petroleum Resources, announced the government’s plan to implement the drill or drop provisions contained in the Petroleum Industry Act, further signaling the nation’s commitment to increasing oil production and meeting global energy demands.
Source: arise
