NNPC Announces Plan to Resume Oil Search in Border of 2 Northern States

• NNPC has announced plans to resume oil drilling in the Kolmani field, located between Bauchi and Gombe states
• The energy company also said work will resume in June and will also restart work on the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project
• It is estimated that the Kolmani project holds an estimated one billion barrels of oil and 500 billion cubic feet of gas

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends

The Nigerian National Petroleum Company Limited (NNPC Ltd) will resume crude oil drilling in the Kolmani field, located on the boundary of Bauchi and Gombe states, in June.

This was disclosed by Bayo Ojulari, NNPC limited group chief executive officer while speaking to BBC Hausa Service on Monday, May 12.

In the interview, Ojulari said that work would also resume on the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, adding that both projects were vital to the country’s economic development.

Ojulari said:

"NNPC will press on with oil drilling at the Kolmani field and advance work on the AKK gas pipeline, stretching from Ajaokuta to Kaduna and Kano.

These projects are pivotal for strengthening the economy, with their benefits set to be felt by all Nigerians."

The AKK pipeline is a 614-kilometre infrastructure project designed to transport natural gas from southern to northern Nigeria, passing through Abuja, Kaduna, and Zaria.

It is considered a key part of Nigeria’s efforts to enhance domestic gas utilisation and spur industrial development in the northern corridor.

Punch reports that NNPC first discovered hydrocarbon deposits in the Kolmani River II Well in the Upper Benue Trough in 2019 and launched commercial drilling in 2022.

The state-owned firm said over a billion barrels of crude oil and 500 billion cubic feet of gas were found in the region, attracting around $3 billion in investment, PremiumTimes reports.

Ojulari expressed confidence that both the oil and gas developments would stimulate economic growth, create jobs, and increase government revenues.

NNPC and Dangote issues settled

NNPC boss also confirmed that tensions between NNPC and the Dangote Refinery had been resolved, signalling a new phase of cooperation between the two major players in Nigeria’s oil sector.

He stated:

"As Nigerians, we must applaud Dangote’s bold efforts. Whatever he invests, he’s investing it right here in Africa.

"We’ve resolved the issues between NNPC and Dangote Refinery, and soon, the impact will be undeniable."

Ojulari said the collaboration between NNPC and the refinery would ease fuel supply bottlenecks.

Ojulari noted:

“Marketers will buy fuel at the refinery any time they want. If there are any obstacles, we will address them."

NNPC reduces petrol prices

Earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) slashed its petrol pump price to N880 per litre on Monday, April 21, for its Lagos retail stations.

This new price represented a N30 reduction from the previous pump price of N910 per litre, and meant that NNPC sold petrol cheaper than Dangote's partners in Lagos.

Source: Legit.ng