Oil expert urges FG to sustain 37.50bn barrels oil reserves

Mr. Joe Nwakwue, Partner, Zera Advisory & Consulting, has commended the Federal Government for its significant achievement in growing the oil reserves to 37.50 billion barrels.

Nwakwue made the remarks in an interview with the newsmen on Tuesday in Lagos.

He said that it was important for the government to sustain the growth and shed more light on the importance of transparency, especially as it regards the sources of the increase.

Supreme News reports that on April 19, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said that the country’s oil and gas reserves stood at 37.50 billion barrels as of Jan. 1, up from 37.046 billion barrels in May 2022.

He noted that the nation’s reserves had been stagnant; they had not been growing for some years.

“This addition amounts to a reserve replacement ratio greater than 200 percent, a clear sign that our output level is way too low.

“We need to invest heavily in exploration, development and production. The many years of underinvestment need to be reversed,” he said.

Nwakwue, also a former Chairman, Nigerian Council of Society of Petroleum Engineers, urged the government to continue to take policy and regulatory steps that would enhance the ease of doing business in addition to assuring regulatory certainty.

“Certainly good for the market. One hopes that this reduction will be sustained as they improve their operating efficiency, and hopefully, competition will emerge.

On refineries, Nwakwue urged the government to privatise the country’s to allow more investors and boost investment profiles.

He said that the government has, over the years, demonstrated a lack of capacity to run anything.

He said, “Why do you think they will now be able to run a refinery properly?

“Can you show me any venture run by the government and her agencies that was successful?” he asked.