Energy

NNPCL Gears Up for Oil Exploration in Ogun

By Web News 322

By Abimbola Bamgbose 

The quest of Ogun State to be an oil producing state will soon materialize as the Nigerian National Petroleum Corporation Limited, NNPCL, sets to begin oil and gas exploration in the Gateway State.

Stakeholders in the oil industry, including the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri,  Managing Director, SHELL Petroleum Development Company Ltd, Mr. Osagie Okubor; Chief Executive, Nigeria Upstream Petroleum Regulatory Commission, Engr. Gbenga Komolafe and the Group Chief Executive Officer, NNPC Ltd, Mr Mele Kyari, stormed Ogun State on Friday on plans by the Federal Government to start oil exploration in the state.

They were received by Governor Dapo Abiodun and his Deputy, Engr. Noimot Salako-Oyedele.

Hon. Lokpobiri, who spoke at the Governor’s Office, Oke-Mosan, Abeokuta said Ogun State had always been part of the Dahomey Basin with prospect of having huge deposit of hyrdro-carbon.

Hon. Lokpobiri who added that oil and gas remain the quickest way to Nigeria’s economic prosperity, said his team is in the State in continuation of the campaign for exploration activities.

He said the visit was also to demonstrate the seriousness and commitment of the federal government to shore up its revenue through the oil and gas sector.

The Group Managing Director, Nigerian National Petroleum Corporation Limited,(NNPCL) Mr. Mele kyari, while speaking, said Ogun State is blessed to be in the Dahomey Basin corridor with expected high deposit of oil, assuring that the corporation is coming back in ernest to commence exploration activities, even as he expressed the hope that oil would be found in commercial quantity.

Responding, Governor Abiodun said Ogun State is part of the OPLs 302,303 306, 307, saying the acreages present unique opportunities for the qualification as a Frontier Exploration State as defined in the PIA section 9.

He observed that the history and studies over the years allow any investment under the frontier exploration basin funding to not only realize the oil and gas potentials, but also acquire data that would aid Bitumen exploration and exploitation in Nigeria. 

The country, Abiodun maintained holds the second largest resolves in the world of 42,b tons, adding that a lot of studies have shown the potential of the basins, which brings Ogun State to the fore and projecting it towards becoming a beneficiary to achieve commercial success and derive economic benefits from exploration and production within a minimum time schedule.  

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News Analysis

Saving Economy Being Bled by Crude Oil Theft

By Web News 786

By Oluwayemisi Owonikoko

 Nigeria is a known agrarian economy nation before the discovery of crude oil in commercial quantity in a village called Oloibiri in present day Bayelsa state and in the Niger Delta in 1956.

According to the Organization of Petroleum Export Countries (OPEC), Nigeria currently has the world’s tenth largest crude oil reserves and is the world’s thirteenth-largest producer of crude oil.

Based on this rating which makes Nigeria the largest oil producer on the continent, oil revenue has played a pivotal role in shaping Nigeria’s economy, accounting for a significant portion of its national income to finance its annual budget as it is usually calculated by the price of the crude oil at the international market.

It is now so unfortunate that the expectation of the nation based on international oil market permutation is repeatedly dashed as most time either due to the crash in crude oil price or inability to export enough to finance its budget thus resorting to borrowing.

Although it is beyond the nation to control the oil price, it can control the quantity being exported which is being confronted by a major problem that is, crude oil theft.

Crude oil theft in Nigeria is a complex and multifaceted issue which involves the illegal extraction, refining, and smuggling of crude oil and petroleum products, often perpetrated by organized criminal networks.

The thieves employed various tactics such as pipeline vandalism, illegal bunkering, and even direct attacks on oil installations, to steal and divert oil for their personal gain.

Various investigations have revealed that 619.7 million barrels of crude oil valued at 46.16 billion dollars equivalent to 16. 25 trillion naira were stolen between 2009 and 2020.

Recently, the Nigerian National Petroleum Company Limited (NNPCL) disclosed that Nigeria recorded a total of 240 crude oil theft incidents in one week.

According to NNPCL, between the 15th and 21st July 2023, oil theft incidents were recorded at various parts of the Niger Delta.

 One of such cases was reported in July this year when a private security contractor, Tantita Security Services intercepted a suspicious vessel with a cargo of crude oil on board.

This persistent problem of oil theft has had severe consequences on the Nigerian economy, hindering growth, fostering corruption, and depriving the nation of much-needed resources for development.

It has also resulted to revenue loss, budget constraints and fiscal instability not only that, it has led to environmental degradation.

Most time, the proceeds from oil theft are often allegedly used to fund criminal activities, including insurgency, terrorism, and other forms of organized crime resulting in the security challenges being faced in some parts of the country.

To address this menace, federal government should strengthen the security measures around oil facilities and installations to prevent further theft of crude oil.

There is also the need to collaborate with international partners to frustrate activities of the syndicates which could be done through information sharing, capacity building and joint surveillance.

Above all, engaging local communities and providing alternative livelihood options can help reduce their reliance on oil theft for income generation.

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