The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has taken steps to ensure that approval for permits is done within hours of application to drive investments into the country’s energy sector
The upstream oil sector regulator is slashing the time it takes to approve applications to revive idle oil wells from weeks to hours as Nigeria, which is Africa’s top crude producer, seeks to take advantage of high energy prices triggered by the conflict in the Middle East.
Bloomberg quoted people familiar with the process as saying the country is also fast-tracking approvals for evacuations and barges at production facilities and export terminals to let barrels get to buyers quickly, as buyers turn to suppliers such as Nigeria and Angola on the African continent.
The US-Israel war on Iran and its countermeasures, including the blockade of the Strait of Hormuz, which handicapped about 20 per cent of crude and liquified natural gas (LNG), have driven oil prices above $100 per barrel.
Citing a spokesman from NUPRC, it was said “speedy approvals” were being given “for all activities that could increase production.”
The recent surge in applications has come from mostly local oil companies seeking to re-enter old wells, with the regulator cutting down an approval process that previously took anywhere from two to six weeks to encourage activities.
Repairing older or suspended wells for production is cheaper compared with drilling new wells, which can take years of planning, with any potential crude taking an average of four weeks to reach the surface.
This is coming after the chief executive of the Nigerian National Petroleum Company (NNPC) Limited, Mr Bayo Ojulari, said the country is ready to increase oil production by about 100,000 barrels per day over the next few months to make up for the crude shortfall resulting from the US-Israel war on Iran.
“We are building that capacity,” he said, though he added “we are not like Saudi (Arabia), but we can contribute,” he said on Monday.
SOURCE: businesspost.ng