Buhari Flags Off Crude Oil Drilling In Northern Nigeria
All is set for the flagging off of the validation phase on Tuesday of first integrated oil development project in Northern Nigeria by President Muhammadu Buhari.
It will be recalled that in February 2019, Buhari flagged off the landmark spud-in ceremony of Kolmani River II Well. Eight months after, the Nigerian National Petroleum Corporation (NNPC), now Nigerian National Petroleum Company ltd announced the discovery of crude oil, gas, and condensate in the Kolmani River region at the border community between Bauchi and Gombe states.
The commercial quantity discovery was the first in the region after eight months of crude oil exploration on the Upper Benue Trough, Gongola Basin in the northeastern part of the country, according to NNPC.
Section 9 of the Petroleum Industry Act signed by Buhari established Frontier Exploration Fund (FEF) with the allocation of 30 percent of profit oil and profit gas from NNPC’s upstream oil & gas contracts (production sharing, profit sharing & risk sharing contract) for the purpose.
The fund is for the development of “frontier acreages” — part of these frontier acreages include those Anambra, Dahomey, Bida, Chad & Benue trough.
In the first seven months of 2022, NNPC expended about N3 billion in frontier exploration services.