President Muhammadu Buhari yesterday inaugurated the first crude oil drilling project in north-eastern Nigeria saying the project would bring many benefits to the nation, including energy security, financial security, food security as well as overall socio-economic development.
Located in the boundary Bauchi and Gombe states, the Kolmani River II Oil Field, according to its promoters, would start producing about 50,000 barrels of crude oil per day.
It is believed to hold over one billion barrels of crude oil reserves, shooting up Nigeria’s oil reserves to over 38 billion barrels.
Speaking at the event, the visibly elated Buhari who is also the minister of petroleum resources said the facility attracted $3 billion worth of investments despite the lack of interest in the oil sector.
“It is, therefore, to the credit of this administration that at a time, where there is a near-zero appetite for investment in fossil energy coupled with the location challenges, we are able to attract investment of over $3 billion to this project.
“This will surely be a reference subject for favourable discussion in the industry that we pursue an energy transition programme that will culminate in our country achieving net-zero carbon emission by 2060,” he said
Buhari further said he had instructed the Nigerian National Petroleum Company (NNPC) Limited to de-risk the project to attract investments.
“Considering the landlocked location, the huge capital requirement, and the economics of the project with a challenging proposition, consequently from the onset, I instructed NNPC Limited to utilise and leverage its vast asset portfolio across all corridors of its operations to de-risk the project to attract [the] much-needed investment. I have directed the NNPC to continue along these lines,” he said.
The president also urged the NNPC and its strategic partners to ensure a harmonious relationship with the local communities.
“I have engaged the governors of Bauchi and Gombe states, and they have given me assurances of their unwavering commitment and willingness to ensure support and cooperation in these localities that these activities affect the local populations,” he added.
Buhari described the oil project as important in the economic history of Nigeria “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.”
Recall that Nigerian National Petroleum Company (NNPC) Limited announced the discovery of crude oil, gas and condensate in the Kolmani River in October 20219.
The commercial quantity discovery was the first in the region after several crude oil explorations on the Upper Benue Trough.
The oil field will be developed by Sterling Global Oil, New Nigeria Development Commission (NNDC) and NNPC Ltd.
