Buhari Kicks Off First Commercial Oil Production In Northern Nigeria

10893

President Muhammadu Buhari on Tuesday, flagged off the commercial production of crude oil and gas from the Kolmani Integrated Development Project, the first of its kind in Nigeria’s North.

Located along th2e fields of Gombe and Bauchi, the Kolmani project, with Oil Prospecting Licence 809 and 810, lies in the Gongola Basin of the Upper Benue Trough, straddling the two Northern states.

READ ALSO:   Attack On Ortom: PDP, Wike Blow Hot

The field, according to its promoters, is to start producing about 50,000 barrels of crude oil per day and holds over one billion barrels of crude oil reserves, shooting up Nigeria’s oil reserves to over 38 billion barrels.

Buhari, at the event said the facility has attracted $3bn worth of investments despite the lack of appetite in the oil sector.

READ ALSO:   Governments Worldwide Impose Travel Bans on Fears of Omicron Strain

He said, “Considering the land locked location and the huge capital requirement, the economics of the project is a challenging proposition.

“Consequently, from the onset, I instructed NNPC (Nigerian National Petroleum Company) Limited to utilise and leverage their vast asset portfolio across all corridors of its operations to de-risk the project to attract the much-needed investment. I have directed NNPC to continue along these lines.

READ ALSO:   Buhari Departs Madrid For Abuja After 3-day Official Visit

“It is, therefore, to the credit of this administration that at a time when there is near zero appetite for investment in fossil energy, coupled with the location challenges, we are able attract investment of over $3bn to this project.”

Describing the occasion as an important milestone in the economic history of Nigeria, Buhari said: “as we move closer to production of oil and gas in the Upper Benue Trough, specifically, the Kolmani River oil and gas field, straddling Bauchi and Gombe states.”

Subscribe to Our VIP Newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here