Article summary
- NNPCL has flagged off the Wadi-B drilling campaign in the Jere LGA of Borno State.
- The NNPCL intends to make more oil and gas discoveries in Nigeria’s frontier basins.
- The Nigerian National Petroleum Company Limited (NNPCL) is committed to making more oil and gas discoveries from the country’s frontier basins to monetize the country’s oil and gas resources.
- The Petroleum Industry Act (PIA) supports expanded frontier exploration using funds from NNPCL’s profits.
NNPCL begins Wadi-B drilling campaign in Borno state for frontier basin oil and gas discoveries.
The spud-in and ribbon-cutting ceremony of the Wadi-B drilling campaign was performed by the Borno State Governor, Babagana Zulum on behalf of President Buhari. During the May 23 Presidential Flag-off of the Wadi-B Drilling Campaign, in the Chad Basin, at Tuba Community, Jere Local Government Area of Borno State, the NNPCL said it is committed to more oil and gas discoveries in Nigeria’s frontier basins.
This was made known by Mele Kyari, the Group Chief Executive Officer (GCEO) of the NNPCL. During his opening statement, Kyari said that President Buhari’s visionary leadership has enabled the return of hydrocarbon exploration in the Chad Basin.
Chad Basin is one of Nigeria’s frontier basins which the NNPCL seeks to fully explore to increase the country’s oil and gas reserves. He said:
- “The re-mobilization of a drilling rig to the Chad Basin for the first time since the 1980s efforts indeed underscore the visionary leadership of Your Excellency, Mr. President, and today, we are honored to have him bring back hydrocarbon exploration activities to the Chad Basin.
- “As a commercial enterprise, NNPC Limited sees this project as an opportunity to monetize our abundant hydrocarbon resources, by expanding access to energy to support economic growth, industrialization, and job creation across the country.
- “Our renewed drilling campaign has a higher geological chance of making commercial discoveries of hydrocarbons as we are equipped with state-of-the-art integrated geophysical datasets.
- “Therefore, this is an event that will reinforce the Government’s commitment to exploration in the Nation’s Frontier Basins, primarily aimed at increasing the Nation’s hydrocarbon reserves.”
Nigeria’s frontier basins include Lake Chad, Gongola, Anambra, Sokoto, Dahomey, and Bida basins as well as the Benue trough. Oil and gas expert, Dan Kunle tells Nairametrics that these basins are long overdue for exploration.
It is important to note also that the recent oil and gas discovery made by the NNPCL in Kolmani between Bauchi and Gombe states, is situated in the Gongola basin. In November 2022, Timipre Sylva, the former Minister of State for Petroleum Resources said that drilling for hydrocarbons in the frontier basins is crucial to Nigeria’s survival as a nation.
What you should know
The Petroleum Industry Act (PIA) stipulates that a frontier exploration fund shall be created and the Fund which shall be 30% of NNPC Limited’s profit from oil and gas as in the production sharing, profit sharing, and risk service contracts. The PIA directs NNPC Limited to transfer 30% of its oil and gas profit to the Fund and that money should be dedicated to the exploration of frontier acreages in Nigeria.
