FG Discovers Crude Oil In Borno

The ministry’s permanent secretary, Jamila Shua’ra, made the disclosure during the agreement signing ceremony for joint venture, JV, cash call exit and presentation of the petroleum sector score card in Abuja.

Though she did not specify if the oil was in commercial quantity, Shua’ra described the discovery of oil in Borno and Lagos states as one of the achievements of the ministry during the year.

“Our doggedness culminated in the discovery of oil in new frontiers – Lagos and Borno.”

Shua’ra listed other achievements of the ministry.

“Today, as a team, we have recorded commendable achievements in our sector: the introduction of the PMS Price Modulation Matrix; the availability of PMS in all outlets; eradication of payment on fuel subsidies; located foreign direct investment to finance midstream oil and gas infrastructure; adopted exit strategies on Joint Venture Cash Call; robust engagement of host communities to reduce agitations; creation of more stable industrial relations,” she said.

Also speaking, Vice President Yemi Osinbajo said the elimination of petroleum subsidy saved the government a burden of N15.4 billion monthly.

Osinbajo, who was represented the attorney-general and minister of justice, Alhaji Abubakar Malami, stated that the oil and gas sector remain very critical to the stability and growth of the nation’s economy as it accounts for about 90 per cent of the country’s earnings.

Prof. Osinbajo explained that the Federal Government had commenced moves to raise the country’s domestic refining capacity for petroleum products by repairing the existing refineries, licensing modular refineries and supporting the development of private-led refineries.

He said: “Recently, the Federal Executive Council approved new measures and strategies aimed at eliminating the burden of joint venture cash calls arrears and easing future payments in the upstream sector. The measures will boost additional investments and raise daily production levels to about 2.8 million barrels per day, mbpd.”

Speaking in the same vein, Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, stated prior to the removal of fuel subsidy, the country was losing over N1.2 trillion annually, however following the elimination the country recorded a decline of the nation’s daily consumption of the premium motor spirit (PMS), from the 40 million litre per day (mlpd) previously to the current figure 28mlpd.

On the issue of militancy in the Niger Delta, the minister said negotiations are at top gear, adding that the government targeted to achieve zero militancy for the industry in 2017.

Oil production in the country has risen to close to 1.8 million barrels per day (bpd), Kachikwu, said ahead of the expected signing of a deal over repayments of $5.1 billion in debts from joint venture projects.The minister is expected to sign a deal on Friday with oil majors, ExxonMobil, Royal Dutch Shell, Eni and Chevron.

Nigeria has struggled with debt to oil majors amid the fall in oil prices over the past two years. The country has also been hit by output falls from peak production of 2.2 million bpd as a result of persistent militant attacks in the oil-producing Niger Delta.