FG Unveils Strategic Initiative to Revitalize Operations at the Zabazaba Oil Field

The Federal Government is strategizing to rejuvenate production at the Zabazaba oil field, as disclosed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Over the weekend, executives from the Nigeria Agip Oil Company Limited (NAOC), led by Managing Director Mr. Fabrizio Bolondi, held discussions with Engr. Gbenga Komolafe, Chief Executive of NUPRC, aimed at advancing the development of Nigeria’s deepwater oil block OPL 245, specifically focusing on the Zabazaba Field.

The objective is aligned with the Federal Government’s initiative to harness the potential of the oil-rich Zabazaba field for the benefit of Nigerians. NUPRC revealed ongoing efforts to address legal matters associated with the Zabazaba oil field, intending to facilitate the resolution of these issues.

The ultimate goal is to progress with the conversion process, transforming the oil prospecting license into a mining lease for commercial oil development and production.

Anticipated outcomes include the Zabazaba field contributing a substantial 150,000 barrels of oil per day, thereby significantly bolstering Nigeria’s overall oil production.

The historical context of the Zabazaba oil field involves a complex series of events, including Malabu Oil and Gas securing an Oil Prospecting Lease for Oil Block 245 in 1998, subsequent legal battles, and the involvement of major players such as Shell Nigeria Ultra Deep Limited (SNUD) and ExxonMobil.

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The Federal Government, through NUPRC, has engaged in strategic discussions with fifteen leading international and independent oil and gas companies operating in Nigeria, including NAOC. These talks have unveiled substantial investment opportunities, with an estimated $55.2 billion in investments projected by 2030. Notably, $13.5 billion is anticipated to be invested by these companies within the next few months.

During these consultations, the participating operators shared insights into the challenges and barriers affecting their investment strategies, aiming for the swift execution of planned projects. Collectively, they identified key enablers necessary to ensure the delivery of 2.1 million barrels by December 2024, positioning Nigeria well ahead of President Tinubu’s campaign promise of reaching 2.6 million barrels by 2027.