Explorationists Bet on Tech to De-risk Nigeria’s Deepwater Acreages

Explorationists are betting on advanced technology, specifically Controlled Source Electromagnetic (CSEM) technology, to significantly reduce the risks associated with deepwater oil exploration in Nigeria. Mr. Dag Helland-Hansen, Global Exploration Advisor at EMGS, asserts that adopting this modern technique is crucial for arresting the decline in oil production and boosting reserves. He explained that CSEM is an independent geophysical method, distinct from seismic surveys, which has matured to a point where its data can be accurately interpreted, a capability that was lacking before 2020.

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CSEM is an independent geophysical technique, similar to seismic but different. And it works now because the processing has come to interpret the data well, which we could not do before 2020. Nigeria is one of those geologic areas it will work the best

Unlike seismic surveys that define the overall prospectivity of an area, CSEM directly measures subsurface resistivity to detect hydrocarbon saturation. This enhanced precision allows operators to identify and prioritize drilling in the most promising prospects early on, thereby accelerating production and mitigating the decline in output. Helland-Hansen emphasized that CSEM lowers exploration risk, making projects more bankable as financiers are often hesitant to fund high-risk drilling operations. By applying CSEM, operators can achieve a lower-risk exploration portfolio, significantly increasing an investor's chances of a successful discovery.

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CSEM lowers exploration risk, making projects bankable as financiers shun risky drilling.

He further advised indigenous firms to actively acquire acreage, conduct thorough preparatory work, and then partner with supermajors for drilling. This strategy is particularly relevant given that smaller companies often struggle to absorb the costs of dry wells, unlike their larger counterparts. The deepwater sector demands substantial capital and expertise, necessitating collaboration with supermajors. Conversely, international oil companies can benefit from partnering with smaller firms that are exploring new ideas and testing innovative approaches to generate prospects. Helland-Hansen called upon the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to integrate CSEM into bid round work programs, drawing a parallel with Norway's successful implementation of such a model. This approach, he argued, would be advantageous for the national economy by reducing exploration expenditure and yielding superior results.

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He called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to include CSEM in bid round work programmes, citing Norway’s model.

Mrs. Olajumoke Ajayi, President of the Nigerian Association of Petroleum Explorationists (NAPE), echoed the sentiment, underscoring the vital role of advanced data reprocessing technologies in unlocking Nigeria’s vast, untapped deepwater hydrocarbon resources. She urged industry professionals to prioritize precision in subsurface imaging to minimize risks and maximize value. NAPE President-elect, Dr. Anthony Ofoma, also highlighted the importance of collective engagement in advancing the association's objectives.

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Mrs. Olajumoke Ajayi, President of the Nigerian Association of Petroleum Explorationists (NAPE), underscored the critical role of advanced data reprocessing technologies in unlocking Nigeria’s untapped deepwater hydrocarbon resources, urging industry professionals to prioritise precision in subsurface imaging to reduce risk and optimise value.