The Department of Petroleum Resources (DPR) says it is formulating a Maximum Economic Recovery (MER) strategy for Nigeria to attain maximum value delivery from its oil and gas resources.
Mr Sarki Auwalu, Director, DPR, made the announcement during a keynote address at the 2021 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) on Tuesday in Lagos.
The Nigerian conference has as its theme: “The Future of Energy –A Trilogy of Determinants: Climate Change, Public Health, and the Global Oil Market.”
Auwalu said the industry initiative was one of the outcomes of the work of the National Oil and Gas Excellence Centre (NOGEC), Lagos inaugurated in January by President Muhammadu Buhari.
He said: “Following an in-depth assessment of the status of the industry, the department identified the need to formulate the “Maximum Economic Recovery strategy for Nigeria.
“This is to guarantee the actualisation of sustainable resource optimisation and the economic benefits arising therefrom.
“The framework for this industry action plan, outlines six pillars or building blocks.”
Auwalu said the pillars were: Reserves Maturation and Production Optimisation, Exploration and Resources Maturation, Improved Oil Recovery and Enhanced Oil Recovery, Implementation Asset Stewardship, Performance Evaluation and Rewards Risk Management.
According to him, the draft framework has been shared with the industry, including professional associations like the SPE and the National Association of Petroleum Explorationists.
He said this was in preparation for an industry collaborative workshop to co-develop and enunciate this strategy for immediate execution.
“We count on the contributions and buy-in of all stakeholders on this crucial national assignment for our overall benefit and industry sustainability, “he said.
Auwalu said Nigeria was rising to the occasion as the ‘trigger’ for continental growth and economic transformation using its oil and gas resources to drive value for national development.
He said the DPR would continue to foster innovative ideas and create opportunities for investments and sustainability in the industry.
Auwalu said: “As always, we are enthusiastic to collaborate with all relevant stakeholders, including the SPE, toward the realisation of governments aspirations for the oil and gas sector.
“In our role as business enablers and opportunity providers, DPR will continue to promote efficiency to meet the needs of the industry, creating value, enhancing transparency, reducing barriers and transaction costs.”