***Buhari inaugurates $3bn oil exploration project in 2 North- East states
In what can be regarded as a game changer and remarkable departure from what is known as the exclusive preserve of the Niger Delta and some riverine states in the South, two states in the North-East, Bauchi and Gombe have now joined the league of oil producing states.
The development also indicates that the economic fortunes of the two Northern states have received a boost as they are now entitled to 13 percent derivation with the attendant billions of naira and other windfalls.
The new status of Bauchi and Gombe states as oil producing states, came into reality on Tuesday when President Muhammadu Buhari flagged -off the commencement of drilling activities and the commercial production of crude oil and gas from the $3bn Kolmani Integrated Development Project.
The Kolmani project, located along the fields of Gombe and Bauchi, with Oil Prospecting Licence (OPL) 809 and 810, lie in the Gongola Basin of the Upper Benue Trough, straddling the two North-East states.
According to its promoters, the field will produce about 50,000 barrels of crude oil per day and hold over one billion barrels of crude oil reserves, shooting up Nigeria’s oil reserves to over 38 billion barrels.
The development came just as the Nigerian National Petroleum Company (NNPC) Limited revealed that it had identified several drillable prospects in the area as it noted that it was also making an oil exploration re-entry into the Chad Basin.
Speaking on the uniqueness of the event, Buhari said the Kolmani River field attracted $3billion worth of investments despite the lack of appetite in the oil sector in recent times.
The President said, “Considering the landlocked location and the huge capital requirement, the economics of the project is a challenging proposition.
“Consequently, from the onset, I instructed NNPC Limited to utilise and leverage their vast asset portfolio across all corridors of its operations to de-risk the project to attract the much-needed investment. I have directed NNPC to continue along these lines.
“It is therefore to the credit of this administration that at a time when there is near zero appetite for investment in fossil energy, coupled with the location challenges, we are able to attract investment of over $3billion to this project.”
Buhari also described the ceremony as important in the economic history of Nigeria, saying that “as we move closer to production of oil and gas in the Upper Benue Trough, specifically, the Kolmani River oil and gas field, straddling Bauchi and Gombe states.”
The President also said, “This is indeed significant considering that efforts to find commercial oil and gas outside the established Niger Delta Basin were attempted for many years without the desired outcomes.
“However, the successful discovery of the Kolmani oil and gas field by NNPC and her partners has finally broken the jinx record by the confirmation of a huge commercial deposit of hydrocarbons in Kolmani River field.”
He added that the discovery had emanated from the Federal Government’s charge to the NNPC to re-strategise and expand its oil and gas exploration footprints to the frontier basins of Anambra, Dahomey, Sokoto, Benue trough, Chad and Bida Basins.
He said, “Exploration in our frontier basins is imperative to the economy of the country. I therefore have directed NNPC to intensify its campaign in the Chad Basin, to discover new hydrogen to extend the economy of the people within the region and the nation at large.
“Our next level is to ensure that exploration is extended to Chad Basin, Gongola Basin , Anambra Basin, Sokoto Basin, Dahomey Basin, Bida Basin and Benue Trough, for a more prosperous Nigeria.
“Gas and oil remain critical to the present economic development of our country and the future. They remain key to the implementation of our budget at all levels of government.”
The President also disclosed that similar activities across the other basins were currently actively ongoing.
He said, “We are pleased with the current discovery of over one billion barrels of oil reserves and 500 billion cubic feet of gas within the Kolmani area and the huge potential for more deposits as we intensify exploration efforts.
“It is good to note that the discovery has now attracted investment for an end-to-end integrated development and monetization of the hydrocarbon resources.
“As a fully integrated in-situ development project comprising upstream production, oil refining, power generation and fertiliser, the project promises many benefits for the nation. This includes but is not limited to energy security, financial security, food security as well as overall socio-economic development for the country.”
Buhari further disclosed that he had engaged the governors of Bauchi and Gombe states, and both had given him assurances of their unwavering commitment and willingness to ensure support and cooperation in the localities as the activity affected the local populations
Buhari said, “I urge the NNPC Ltd, New Nigeria Development Company (NNDC), and their strategic partners to ensure all lessons learnt from our years of experience as an oil-producing nation are utilised to ensure harmonious relationship with the local communities.
Buhari added that his association with hydrocarbon research started in Lake Chad when he was the Federal Commissioner of Petroleum and Natural resources in 1976.
He said, “That era led to the drilling of 23 wells, two of which were gaseous, where NNPC acquired 2,000 square meters of land in the basin.”
Buhari further commended the NNPC and other stakeholders in the Kolmani-II oil well project, just as he paid tribute to some university lecturers abducted while undergoing research work on the project.
The President also commended security agents for working tirelessly to ensure that the area was safe to conduct exploration activities.
He reiterated his administration’s determination in pursuing its goal of ensuring adequate security, enhancing the economy of the country, as well as fighting corruption.
Meanwhile, the Northern Governors have called on the Nigeria Upstream Petroleum Regulatory Commission to ensure the quick conversion of the Oil Prospecting Licence of the Kolmani field to an Oil Mining Licence.
On the discovery of other drillable prospects in the area, the NNPC explained that this was achieved after it drilled oil in Kolmani.
In an explanatory note, the NNPC said, “Using state-of-the-art hydrocarbon derisking technologies, including magnetotelluric technology, air-borne based stress field detection technology and micromagnetic analysis, among others, FES went into an aggressive exploration to achieve commercial discovery in the (Kolmani) basin.
The Group Managing Director of NNPC, Mr Mele Kyari, had earlier disclosed that the exercise started some years back but had to be suspended in 2000 as a result of the abduction of experts working on the project.
Condoling with those who made sacrifices towards ensuring the realization of the set goals, Kyari said oil exploration was a capital intensive project that took many years to accomplish.
But he said with patience and perseverance, success could be attained and therefore commended all stakeholders, urging them to sustain their commitment.
