The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that over 3.5 billion barrels of oil and condensate reserves are locked in undeveloped fields across different basins in Nigeria.
The commission disclosed this in a new report, adding that 18.8 trillion cubic feet of associated and non-associated gas reserves were still locked under the ground.
According to the report, the development status of deepwater oil and gas fields revealed a significant untapped potential in the sector.
The report showed that 31.65 per cent of these fields remain undeveloped, marking the largest category.
This figure underscores the vast reserves that are yet to be harnessed, potentially impacting the government’s financial capacity and forcing the country to borrow more.
In contrast, only a paltry 12.25 per cent of the deepwater oil and gas fields are currently classified as developed fields, indicating that operational sites constitute a moderate portion of the total allocated fields. This suggests that while some progress has been made in bringing these resources online, the majority of the industry’s focus may still be on planning and initial stages rather than full-scale production.
Meanwhile, 5.10 per cent represents fields where development is in view, indicating that there are limited projects in the pipeline at this time.
The development status of the deep offshore oil and condensate reserves showed that 1.7 billion barrels are in developed fields, representing 25 per cent; 1.5 billion barrels (23 per cent) are in fields tagged ‘development in view’, while 52 per cent are in undeveloped fields.
It was reported that as of January 1, 2025, the deepwater terrain contributed approximately 19 per cent and 12 per cent of oil and gas reserves in Nigeria. 65 per cent of the discovered fields are undeveloped, while only 10 per cent of the discovered fields are developed. 25 per cent of deep offshore reserves have ‘development in view’.
“This implies that over 3,500 MMB of oil and condensate reserves and 18.8 TCF of non-associated gas and associated gas reserves are locked in undeveloped fields,” the report said.
It was also stated that development gas reserves were just 4.7 TCF, while 877 billion cubic feet of gas reserves are currently undergoing development processes.
These current figures are in fields that have been identified but left fallow.
The NUPRC said Nigeria’s oil reserves stood at 37.28 billion barrels, while gas reserves hit 210.54 TCF.
It was also reported that there are 220 unlicensed oil blocks scattered in different onshore and offshore basins across the country.
Recall that the federal government recently lamented the state of unutilised and idle fields, with the Minister of Petroleum Resources (Oil) urging companies to loan them to more capable operators of risk losing them.