The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, has disclosed that oil exploration in the North will continue until it is found.
Baru said this would enable the NNPC do massive appraisal of the discovery of gas reserves, made in 1999 in the region.
The NNPC GMD, who was in Kaduna for the 40th edition of the Kaduna International Trade Fair, said the Corporation is working on the Kolmani River 2; with optimism and high expectation. He said President Muhammadu Buhari had personally urged the Corporation to go back to exploration on the Kolmani River 2 Well, and that drilling has been going on smoothly. He said that as at Wednesday morning, the Corporation has dug 10,075 feet deep well with a target to reach 14,270 feet exploration.
“The main purpose of this well is to start some massive appraisal of the discovery that was made way back in 1999 of some gas reserves in Kolmani River 1 and, so far, the drilling has been going on smoothly to enable exploration.
“We will do the needful. If we need to probe any particular section, we will take our time to do it.
“Our target date is to see that by the end of May, we complete exploration on that particular well and move to Kolmani River III, which site is almost ready for the rigs to move there and from there, we move to other locations,” he said.
Earlier, the GMD said that provides an opportunity for stakeholders and long term exhibitors like NNPC to take stock of their participation through the years, with a view to consolidating on areas of strength, while working on avenues for improvements.
Dr. Baru said the loss of agriculture to crude oil exploitation has retarded local industries that feed on agricultural produce as feedstock, prominent among which were the textiles industry, as well as tanneries in the North.
Meanwhile, Baru has said there were no plans to increase the price of petroleum products for now.
He said even though there is an agency saddled with the responsibility of fixing petrol price, President Muhammadu Buhari has said there would be no increase in the pump price of petroleum products for now.
In the last four decades, the NNPC has invested about $3billion in crude oil exploration activities in northern Nigeria. However, the investment has failed to yield any positive dividend, as the state-owned oil firm is yet to strike hydrocarbons in such commercial quantity for exploitation activities to commence. While some Nigerians see the continuous investments in the search for crude oil deposits in the north as a waste, those in favour of the search remain optimistic.
Meanwhile, the Minister of State for Petroleum Resources, Ibe Kachikwu has tasked indigenous operators to step up their investments and take over major operations from international oil companies, especially as many are already considering divesting and charting new paths.
Besides, the minister emphasised the need to double oil production to four million barrels per day as against the present daily turnover of between 1.9 to 2mbpd.
According to him, changes in the global oil and gas industry are presently challenging the present exploration and investment strategies as oil is fast becoming a degenerating asset with alternative sources of energy taking over and attracting new investments.
He noted that while the world is moving on from fossil fuels, Nigeria is yet to take advantage of the opportunities in the sector and design strategies to harness advantages of renewables.
He therefore urged indigenous firms to take over and stop playing safe if they will benefit from the opportunities availed through new trends in the industry.
Kachikwu said on Thursday that the Federal government has succeeded in ensuring that cost of crude production is reduced to $23 per barrel from about $32, adding that some companies in the Joint Venture with NNPC have already driven the cost down to $15.
Kachikwu, during the opening ceremony of the 2019 Nigeria Oil and Gas Opportunities fair in Yenagoa said henceforth, approval for projects in the petroleum industry would be based on the cost of producing oil and gas adding that efforts were on to further ensure the cost were brought down to below $15 per barrel.
He added that the Federal government is keen on ensuring that the country’s refineries work.
He further noted that efforts to bring down cost of production should not be by the government or through policies, but should be driven by the private sector.
Kachikwu said that government is also working towards ensuring zero gas flare by 2020, adding that the present adminstration had impacted positively in the oil producing States
The minister further stated that henceforth, oil companies must take the initiative to ensure stability in their area of operations.
He commended the NCDMB complex, which he said would be a rally point for stakeholders in the sector.
Besides, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote called for policies to further drive establishment of modular refineries and local production of LPG cylinders.
According to Wabote, there are multiple opportunities in the oil and gas sector yet to be harnessed by indigenous operators as policies have been designed to drive the implementation by operators.
Speaking on “Maximizing oil and gas industry for benefit of Nigerian people”, Wabote explained that despite the various achievements recorded in the milestones set in 2017, opportunities are availed to indigenous operators who take advantage of the five policy frameworks designed for the growth of the industry.
Specifically, he identified the opportunities to include ones driven by policies, funds, infrastructure, linkages and people, adding that recent IEA data revealed the rising demand for gas, especially from Africa, necessitating Nigeria to maximise the opportunities and play a key role in the sector.
On his part, Bayelsa State Governor, Seriake Dickson, assured operators of the commitment to stability in the state and region by oil producing state leaders.
He also emphasised the need for the international oil companies to commit to the environmental issues raised by communities adding that addressing such concerns further help the state administrators to make the environment conducive for their operations.