The Nigerian National Petroleum Corporation (NNPC) said it is eyeing new funding option to increase oil reserves to 40 billion barrels by 2020.
Its Group Managing Director, Dr Maikanti Baru, stated this in Lagos, at the ongoing conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).
Represented by the Chief Operating Officer, NNPC Ventures, Dr. Victor Adeniran, the GMD said the industry requires special fund for hydrocarbon exploration to fully achieve its potentials.
Baru said: “Currently, as a physical incentive, all exploration cost within the industry is expensed, this is a laudable and pro industry incentive from the government.
“The implications is that funding or spent need to be incurred prior to taking benefits, hence the funding structure of exploration within the industry need to be strengthened. However, we need to go beyond and above that.”
He added that the Corporation on its part was willing to work with partners and the industry in that regard.
He also said consideration on the part of government should be how to open up new place in terms of marginal fields’ development, dormant assets and new assets, as there are still condensing prospects for new oil and gas reserves in the country particularly in the ultra deep-water and inland frontier basins, and the timing and process must be transparent.