N149bn exploration commitments in new basins find no commercial oil

Group Managing Director of NNPC, Dr. Maikanti Baru

Despite gulping about N149.4billion since inception, the seek for commercial oil (worthwhile sufficient to offset prices) in Nigeria’s new frontier basins remained skinny, because the Bida Basin, Niger State foray for hydrocarbon has not yielded anticipated outcomes.

Already, seven wells thus far drilled in the Bida Basin, confirmed no signal of oil in commercial amount.

Early this 12 months, an estimated $10billion oil exploration undertaking in Bida Basin, was accredited for a Chinese agency to hold out preliminary works to find out the provision of oil in the realm.

This quantity is unique of the $340million, and extra N27billion dedicated by the Federal Government in seismic expedition because the starting of seek for oil in the new frontier.

A laboratory research for hydrocarbon deposits in the Bida Basin revealed that there was about a 70 per cent gasoline and 30 per cent oil composition.

The Bida Basin also called the Mid-Niger Basin is without doubt one of the inland sedimentary basins, the place Nigeria is hopeful of discovering worthwhile reserves.

But the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, dashed the hope on Sunday, dispelling speculations that oil had been discovered in commercial amount in the Bida Basin.

Baru, who famous that NNPC is desirous of discovering hydrocarbon sources in the frontier basins, additionally disclosed that the Corporation was at present on the fourth, out of the ten intensive levels of figuring out if reserves had been generated in the basins.

He averred that upon the completion of willpower NNPC would provoke one other six levels of integration of the research to establish constructive hydrocarbon anomalies, purchase 2D seismic information over anomalies.

Furthermore, it will purchase 3D seismic information to validate recognized buildings for the drilling of exploration wells and appraisal wells, and analysis of the engineering and financial parameters required.

He emphasised that in this fourth stage of actions, you will need to state that efforts haven’t superior to the extent of declaring discoveries, a lot much less confirming the presence of oil and gasoline in commercial portions.

“It is also imperative to state that even after commercial discovery of hydrocarbons, it is pertinent that pronouncements be made only after due validation of claims by the industry regulator – the Department of Petroleum Resources (DPR),” Baru suggested.

His place corroborates that of the Commissioner for Mineral Resources, Hajia Rahamatu Mohammed Yar’adua’s in a assertion tagged, “The Bida Basin Project: The Correct Narrative,” confirming that Niger State had solely engaged a marketing consultant to hold out preliminary works to find out the provision of oil in the realm.

She mentioned the clarification grew to become vital following the misrepresentation of the State Government’s efforts in some media that authorities had claimed that oil had been found in commercial amount in the State.

“The consultant has concluded most of the tasks entrusted to them. Shallow wells were drilled and shale samples results confirm the availability of hydrocarbon in the basin. The consultant will conduct seismic analysis of the basin soon to determine the quantity of oil and gas in the basin.”

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