On the border of the states of Bauchi and Gombe, President Muhammadu Buhari today signaled the start of the first crude oil drilling operation in northern Nigeria.
Over a billion barrels of oil have been discovered in the area, the President said during the event.
In addition, according to Buhari, the nation has discovered 500 billion cubic feet of gas in the Kolmani region of Gombe and Bauchi, which has already attracted $3 billion in investment.
The Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the northeastern region of the nation, was where hydrocarbon resources were found, according to an announcement made by the Nigerian National Petroleum Company Limited (NNPCLtd) in October 2019.
After multiple crude oil investigations in the Upper Benue Trough, including reports of the kidnapping of several exploration personnel previous to the finding, the commercial quantity discovery was the first in the area.
The President stated that Sterling Global Oil, the New Nigeria Development Commission (NNDC), and NNPC Ltd. will develop the oilfield.
According to the NNPCLtd, the finding of commercial amounts of oil and gas in the Gongola basin will draw in international investment, provide jobs for people to make a living, and boost tax collections.
At the flag-off event, President Buhari expressed his happiness that a long-standing curse had been finally broken by the successful discovery of the Kolmani oil and gas field.
Considering that attempts to discover commercial oil and gas outside the established Niger Delta Basin were made for many years without the expected results, he added, “this is, certainly, important.”
The President added that the finding was the result of a directive given to the NNPCLtd to re-plan and broaden its oil and gas exploration footprints to the border basins of Anambra, Dahomey, Sokoto, Benue trough, Chad, and Bida.
He mentioned that comparable initiatives are currently taking place in the other basins.
“We are happy with the recent discovery of more over 1 billion barrels of oil reserves and 500 billion cubic feet of gas inside the Kolmani region, as well as the enormous potential for new deposits as we step up our exploration operations.
“The project provides several advantages for the country as a fully integrated in-situ development project that consists of upstream production, oil refining, power generation, and fertilizer.
This includes, but is not limited to, the country’s general socioeconomic growth, financial security, food security, and energy security, the official added.
Buhari observed that the project’s economics are a difficult proposition given its landlocked location and substantial capital required.
“As a result, I gave NNPC Ltd. instructions right away to use and leverage their extensive asset portfolio across all of their operational areas in order to de-risk the project and attract the crucial investment. I’ve told the NNPC to keep going in this direction.
As a result, he stated, “It is to the credit of this government that we are able to attract investment of over USD 3 billion to this project at a time when there is near-zero demand for investment in fossil energy.”
He said that as Nigeria pursues its energy transformation program, which is anticipated to result in attaining net-zero position 1 by the year 2060, this will serve as a debate point in the sector.
As this action has an impact on the local communities, he stated, “I have contacted the governors of Bauchi and Gombe states, and both have given me guarantees of their steadfast commitment and desire to provide support and collaboration in these regions.”
