UPDATED: NNPC’s Kolmani Integrated Development Project Will Guarantee Energy, Financial Security For Nigeria—Buhari

…Says Project Has Attracted Over $3bn Investments Into Nigeria’s Oil & Gas Sector

President Muhammadu Buhari on Tuesday officially flagged off the ground-breaking ceremony of the Kolmani OPLs 809 and 810 at the Kolmani field site in Bauchi and Gombe States.

The flagging off by the President is coming three years after the Nigerian National Petroleum Company Ltd discovered crude oil in commercial quantity in the region.

The NNPC Ltd had in October 2019, announced the discovery of crude oil, gas and condensate in the Kolmani River region at the border community between Bauchi and Gombe states.

This oil field is to be developed by Sterling Global Oil, New Nigeria Development Company and NNPC Limited.

The event was attended by the Minister of State for Petroleum Resources, Chief Timipre Sylva; Board Chairman, NNPC Ltd Margery Chuba Okadigbo; Group Chief Executive Officer, NNPC Ltd, Mele Kyari; Governor, Bauchi State Bala Mohammed; Governor, Gombe State, Muhammad Inuwa and Governor, Plateau State, Simon Lalong.

Also in attendance is the President of the Senate, Dr. Ahmad Lawal; the Presidential Candidate of the All Progressive Congress Asiwaju Bola Ahmed Tinubu, Group Managing Director of NNDC, Shehu Usman Mai-Borno and the MD SEEPCO Limited, Mr. Mohit Barot among others.

Buhari said that the discovery of crude oil in the region was vital as it would help to guarantee energy, financial, and food security for Nigeria.

He added that through the project, the economic development of the country through investments that will be attracted into the sector will be accelerated.

He described the project as significant considering that efforts to find commercial oil and gas outside the Niger Delta Basin was attempted for many years without the desired outcomes.

However, he added that the successful discovery of the Kolmani oil and gas field by NNPC and its partners has finally broken the jinx by confirmation of a huge commercial deposit of hydrocarbons in Kolmani River Field.

The President said the discovery emanated from his charge to NNPC to restructure and expand its oil and gas exploration footprint, noting that he is excited with the current discovery of over 1 billion barrels of oil reserve and 500 billion cubicles of gas within the Kolmani area.

He said, “It is a huge potential for multi deposit as we intensify the exploration effort. It is good to note that the discovery now attracted investment, noting that the project promises many benefits for the nation.
“Considering the land location, the huge capital requirement to the project is a challenging proposition. Consequently, from the onset, I instructed NNPC to utilize the leverage of their vast assets portfolio across all corridors of this operation to de-risk the project, to attain the matured investment.

“I hereby direct NNPC to continue along these lines. It is therefore to the credit of this administration at a time where there is near zero for investment in fossil fuel energy coupled with their allocated challenges.”

The President said that already, about $3bn investments have been attracted into the project, adding that his administration will continue to provide the needed support for more investments to come into the sector.

In his remarks at the event, Kyari commended the support which the NNPC has received so far from the President since it commenced the exploration activities.

He said, “Our collaboration with the new Nigerian development company, both as production sharing contractor to the federation, and a deliberate partner of our upstream company resulted in the remarkable outcome and the event of today.

“Let me use this opportunity Mr President to appreciate and thank the outstanding staffs of the NNPC whose toil, competences and commitment brought about the discovery of the Kolmani River and of course also gave us the understanding of this country which has pointed at the direction where will can find more oil in nearly all part of the country.”

The first phase of the project is expected to entail an in-situ oil refinery with a capacity of up to 120, 000 barrels per day, a gas processing plant of up to 500 million standard cubic feet per day, a power plant of up to 300MW capacity, and a fertiliser plant of 2,500 tons per day.

The flag-off of the crude oil drilling is a major boost to the efforts by the federal government to ensure that the region produces crude oil in commercial quantities.

OPLs 809 and 810 lie in the Gongola Basin of the Upper Benue trough in the straddle area between Bauchi and Gombe State.

The Gongola Basin which is part of the Upper Benue Trough is a North-South trending arm of the 1000 km long Benue Trough.

The New Nigeria Development Company participated in the Nigerian License Round of August 2005 and won four blocks including OPLs 809, & 810.

These acreages were first awarded by the Nigerian government, under Production Sharing Contracts (PSC) in 1993, to SNEPCo, Chevron and ELF.

These companies drilled a well each in their respective blocs. Kolmani River-1 was drilled on OPL 809 by SNEPCo, Nasara-1 on OPL 810 by CHEVRON and Kuzari- 1 on OPL 813 by ELF.

Both reported no commercial finds and abandoned the field.