The significance of the above exploration and appraisal drilling figures is that
exploration and appraisal activity in 2010/11 is a leading indicator for the
level of oil and gas production in, say, 10 years’ time. The disastrously low
level of exploration activity in Nigeria is borne out by the following data.
exploration and appraisal activity in 2010/11 is a leading indicator for the
level of oil and gas production in, say, 10 years’ time. The disastrously low
level of exploration activity in Nigeria is borne out by the following data.
Some 67 percent of announced deepwater discoveries over the period 2009-2011 are
concentrated in six countries:
1. Brazil 40 discoveries, representing 20 percent of the global total
2. Australia 25 discoveries
3. The US 24 discoveries over the three years
4. Norway 20 discoveries
5. Angola 12 discoveries from 2009- 2010
6. Ghana 9 discoveries
7. Nigeria 4 discoveries
concentrated in six countries:
1. Brazil 40 discoveries, representing 20 percent of the global total
2. Australia 25 discoveries
3. The US 24 discoveries over the three years
4. Norway 20 discoveries
5. Angola 12 discoveries from 2009- 2010
6. Ghana 9 discoveries
7. Nigeria 4 discoveries
In total, 37 countries announced deepwater discoveries over the period 2009 to
2011, of which 7 were newcomers.
The above statistics suggest that Nigeria is not attracting a commensurate share
of global exploration dollars taking into consideration its current production
ranking and resource base. This is a huge problem because it will have a
negative impact on oil and gas production and associated state revenues in 10 to
15 years’ time. Against the background of a large and growing population, the
lack of economic diversification away from oil and gas and the expensive
administrative machinery, this is not a state of affairs that will lead to the
accomplishment of developmental aspirations by 2020. It is useful to discuss how
we have arrived at this state of affairs.
2011, of which 7 were newcomers.
The above statistics suggest that Nigeria is not attracting a commensurate share
of global exploration dollars taking into consideration its current production
ranking and resource base. This is a huge problem because it will have a
negative impact on oil and gas production and associated state revenues in 10 to
15 years’ time. Against the background of a large and growing population, the
lack of economic diversification away from oil and gas and the expensive
administrative machinery, this is not a state of affairs that will lead to the
accomplishment of developmental aspirations by 2020. It is useful to discuss how
we have arrived at this state of affairs.
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