A Review of the Nigerian Energy Industry

NNPC woos investors for untapped oil basins

13 November 2012, Sweetcrude, LAGOS – GROUP Managing Director of the Nigerian National Petroleum Corporation, NNPC, Mr. Andrew Yakubu, has urged potential investors to tap into the nation’s yet-to-be explored oil basins, including the offshore and inland basins.

Yakubu said, in a statement by his acting Group General Manager, Public Affairs, Mr. Fidel Pepple, that geological discoveries are indicative that potentials may abound in the inland basins as well as offshore, citing Lagos as one of the areas worthy of attention.

He spoke on Monday in Lagos at the 30th annual international conference and exhibitions of the National Association of Petroleum Explorationists, NAPE.

“Despite challenges being faced by the industry in recent times, it has remained vibrant with significant increase in exploration activities in the past years.

“There are more than seven exploration rigs that are actively engaged in different locations in the acreages.

“The preliminary reports from most of the exploration activities have indicated positive potentials with great promises of enhancing the reserve potentials of the country,” Yakubu said.

According to him, the NNPC as the industry leader would sustain recent initiatives in the oil industry to ensure that the country maintains the tempo in the drive not only to replenish produced oil and gas but also to achieve the aspirations and targets of 40 billion barrels of oil reserve in the nearest future.

He added: “To achieve the nation’s aspiration in the sector, NNPC has re-positioned its subsidiaries, particularly the IDSL to take advantage of the opportunities presented by the national hydrocarbon reserve growth targets.

“The data acquisition, storage and processing capacities of IDSL have been greatly enhanced to achieve these objectives. Building on the success of the 100 percent Nigeria seismic-crew, the process of building IDSL capacity has started to venture into marine data acquisition.”

The NNPC boss also disclosed that in fulfilment of the plan to raise Nigeria’s oil reserves, increased efforts and resources would be deployed to exploration activities, particularly on new frontiers and the deep and ultra-deep offshore basins.

He added that the NNPC was now engaged in exploration programmes in seven inland basins of Anambra, Bida, Sokoto, Chad, Benue trough, Dahomey, Gongola/Yola in Nigeria.

“Geological reports from some of the basins indicate that more potentials may lay abound in the basins, though security challenges have slowed down progress of work in some of these areas, NNPC will continue to forge ahead in the quest to deliver value to stakeholders in the industry,” he said.

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  • There has to be clarity in both the fiscal and policy framework for such investments. Certainly, investors wouldn’t throw good money after bad.