Marginal Fields Development in Nigeria: A Review of Extant Strategies

Abstract

This paper focuses on the development of marginal fields in Nigeria, the challenges, economic viability, and the role of the government in implementing the contributions of marginal fields to the national oil production output. Also, the previously reported marginal field development and management practices in the Niger Delta oilfield are x-rayed. Following the definition of the marginal field is an overview of different types of marginal field development in the Niger Delta region. Also, the United Kingdom Oil and Gas Recovery Regulatory Commission, the United States Security Exchange Commission, and the Nigerian government's categorization of what compose of a marginal field are included. In addition, the participation of the Nigerian federal government and contributions to the development of marginal fields in the bidding of marginal assets to the development of infrastructure are presented. Particular attention is paid to the factors that affect the development and choice of production strategies in the marginal fields of the Niger Delta. These factors discussed in detail in the document include environmental, technical, social, political, and economic factors. Again, different management and development strategies used by some marginal fields of the Niger Delta are x-rayed and presented with a particular focus on three of those strategies. The three common approaches in the Niger Delta marginal field development strategy are water flooding, infill drilling, and infrastructure sharing. These approaches have made marginal fields in Nigeria operational, competitive, and economically viable to date.