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Oil exploration breakthrough in Gongola opens up new frontiers

NNPC drilling crew working at Kolmani River-II in Gongola Basin encountered hydrocarbon outflow to the wellhead while testing

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NNPC, Domestic Crude Allocation, Why NNPC’s Duke Oil is quitting London operations for Dubai , NNPC divests stake in four oil wells to NPDC , How NNPC discovered oil, gas deposits in the North , Nigeria to leverage on condensate refineries to be petrol net exporter, How NNPC saved $3 billion from arbitration , NNPC, IPPG donate medical supplies to South West state governments, NNPC discloses bases for employment and managerial progression in the oil firm, NNPC diversifies into housing, power; plans to beat crude production cost to $10 per barrel

On October 10, the NNPC drilling crew working at Kolmani River-II in Gongola Basin encountered hydrocarbon outflow to the wellhead while testing. Preliminary evidence from the exploration area revealed that the hydrocarbon deposits consist of gas, condensate, and light, sweet crude of API gravity between 38 and 41 degrees.

While the bulk of Nigeria’s energy wealth is concentrated in the prolific Niger Delta, exploration for oil in the North East (Gongola and Chad basins) picked up recently, and this particular find is a major victory for NNPC in its quest to identify new hydrocarbon basins outside of the South-South region.

The exploration team is yet to provide estimates of hydrocarbon quantities, but should the find be significant, Nigeria’s Reserve: Production ratio just got a major boost. Besides, this event is expected to spur concerted exploration in and around the region for more hydrocarbon deposits. New, commercially viable finds can coincide with the complete overhaul of the four national refineries (including Kaduna) scheduled for completion around 2023.

Crude and Gas feedstock can come from that area to the Kaduna refinery, rather than transporting via pipelines from the South-South. This find is also significant because it opens up opportunities for new Oil and Gas infrastructure (including pipelines, terminals & gas processing facilities) to reduce Nigeria’s deficit and underdeveloped value chain within the sector.

We also expect that investors will tap the potential of modular refineries to process crude and facilitate development of the regional value chain. Meanwhile, new retail stations will open up a nascent export market in neighbouring Chad and Niger. Thermal power stations in and around the North-East/North-West will also benefit of gas (Associated/NonAssociated) from the discoveries.

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However, the key investment risk that regulators including NNPC, DPR (and others enabled by the upcoming PIGB) have to mitigate, is the security conundrum in the region. There are indications that this discovery might open up conversations around resource control and a review of the derivation formula.

Download the full article here

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3 Comments

3 Comments

  1. Magaji Isa Hunkuyi

    October 26, 2019 at 5:53 am

    Hope the finding is in commercial quantity and if is so the search should be extended to areas outside Gongola and Benue basin but Kaduna River,sokoto and Bidda basin

  2. Kprrrrruuuuuu!

    October 26, 2019 at 12:10 pm

    NNPC is not a regulatory Agency.
    Please let us take note.
    NNPC is like Shell, Chevron etc. NNPC is like Petrobras and Sinopec. It is an Oil Company but owned by the Government. It isn’t a regulatory Agency.
    The Regulatory Agency for the Oil and Gas Industry in Nigeria is the DEPARTMENT OF PETROLEUM RESOURCES (DPR).

    • Adetokunbo Adesina

      October 26, 2019 at 12:12 pm

      Who even told them that NNPC is a regulatory agency. Misinforming journalism.

      Congrats to Nigeria on the new find. May it benefit us all.

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Energy

Togo, Niger, Benin remit N2.04 billion to Nigeria for power supply

Nigerian Electricity Regulatory Commission says international electricity customers remitted the sum of N2.04billion to Nigeria in three months.

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NERC postpones increase of electricity tariffs

Nigeria’s international electricity customers – Togo, Niger, and Benin, remitted the sum of N2.04billion in the first quarter of 2020, as their outstanding electricity bill to the Market Operator (MO) of the sector in Nigeria.

This was found in the Nigerian Electricity Regulatory Commission 2020 first quarter report, which was released recently.

According to the report, a total of N4.05billion ($13.22million) invoices were issued by the MO to international customers including Societe Nigerienne d’electricite or NIGELEC; Societe Beninoise d’Energie Electrique (SBEE); and Compagnie Energie Electrique du Togo (CEET).

The commission stated that during the quarter, NIGELEC made a payment of ₦1.61billion ($5.27million) as part of its outstanding bills for the energy received from NBET and services rendered by the MO.

It stated, “Similarly, SBEE paid ₦0.43billion ($1.39million) in respect of services received from MO.

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“It was noteworthy that tariff shortfall (represented by the difference between actual end-user tariffs payable by consumers and the cost-reflective rates approved by NERC) had partly contributed to liquidity challenges being experienced in the industry.

“The settlement ratio to the expected Minimum Remittance Thresholds, having adjusted for tariff shortfall, indicated that power distribution companies needed to improve on their performance.”

But

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Special customers like Ajaokuta Steel Co. Ltd and others in its environs did not make any payment in respect of the N0.27billion and N0.05billion invoices issued to them by the Nigerian Bulk Electricity Trading Plc and the MO respectively, during the period under view.

Meanwhile, the power distributors failed to remit N119.88billion to the sector within the same period.

Whereas Discos were expected to make a market remittance of 46.09% during 2020/Q1, only 32.53% settlement rate was achieved within the timeframe provided for market settlement in the Market Rules,” it added.

What it means: The Discos’ remittance level, regardless of the prevailing tariff shortfall, was still below the expected MRT and they are expected to improve on their performances.

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ENDSARS

#EndSARS: Protests may return if panels do not address all issues in 2 weeks – Former Nigerian Minister

Akinyemi says the #EndSARS protesters would return to the streets if their demands are not addressed in two weeks.

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This was disclosed by Professor Bolaji Akinyemi, during a news interview with ARISE TV this afternoon, as he called on the FG to urgently address the issues raised by the protesters, as these issues extend beyond police brutality and the immediate reform of the Nigeria Police force.
He explained during the interview that the current demands of the youths extend beyond basic needs, which remain the core mandate of the present administration.
He likened the #EndSARS protest to the #BlackLivesMatter demonstration and reiterated that demands of the youth extend beyond stomach infrastructure, as it is more of a call for good governance in a bid to address the concrete issues that the country faces.
He called for strategic actions towards combatting the evils of unemployment in Nigeria; called on the military to employ more military men to soak up the unemployment, and also provide security for the country.
On the issue of restructuring, Professor Akinyemi said restructuring is also key to solving the many problems facing the country.
The Professor of Political Science noted that the way forward for Nigeria will be for the government to utilize the Justice Mohammed Uwais report on electoral reforms and the 2014 National Conference report, which he believes addresses the issues confronting Nigerians.
What they are saying
During the interview, Professor Akinyemi said, “I will say and let me believe I am wrong, the judicial panels have just two weeks to address all these issues before the youths come back to the streets. The government should at least give the youths the impression that you have not set up all these panels to buy time, but that you are genuinely and seriously interested in addressing their issues.”
He reiterated the need for the employment of more police officers,
We told the government, because I was part of that conference, that the United Nations said Nigeria needs 1.5 million policemen. We have only about 350,000 and we were recommending that the Nigerian government should employ 750,000 more policemen.”
What we’ve seen in the past two weeks is that we don’t have enough men in uniform to guarantee security in this country if every part of the country decides to blow up. So you serve two purposes – employment and security, and those are things you can do immediately.
“We have just seen how every Governor was scrambling around in the past two weeks; if you allow each state to have its own state police, you wouldn’t have that experience. I have heard of a situation where the streets took over even governance in almost every state. So, restructuring is that you allow things to be done at the local level.”

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Coronavirus

COVID-19: Jason Njoku and wife test positive

iROKOtv CEO and wife have contracted the novel coronavirus.

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Jason Njoku and Wife testes positive to Covid-19

Jason Chukwuma Njoku, the co-founder and CEO of iROKOtv and his wife has tested positive for COVID-19. However, Mrs. Mary Njoku is feeling well.

Jason,  disclosed this via his Twitter handle stating that “My enemies are hard at work in 2020. Mrs. Njoku and I tested positive for Covid-19. I’m not feeling great, but Mary is well. Literally no idea how I caught it. But we shall see this pass too.”

The media mogul did not reveal if his children caught the virus too.

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