Bayo Ojulari, the Group Chief Executive of the Nigerian National Petroleum Company Limited (NNPC), announced that oil drilling operations will resume in the northern region of Nigeria, specifically in the Kolmani area on the border of Bauchi and Gombe states. This announcement comes more than two years after the project was launched by former President Muhammadu Buhari.
In an interview on Monday, Ojulari urged residents of the region to remain patient and expressed optimism about the potential benefits the project will bring once completed.
Kolmani Oil Discovery and Initial Drilling
The Nigerian oil giant made a significant discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough in 2019. This area, located in the Gongola Basin in northeastern Nigeria, was hailed as a landmark find. The government commenced commercial drilling in 2022, marking the first time oil drilling was carried out in the region after several exploratory efforts in the area.
At the time, it was revealed that the Kolmani field had over one billion barrels of oil and 500 billion cubic feet of gas. This discovery attracted an estimated $3 billion in foreign investment and generated significant interest in the region’s potential for future development.
Resumption of Operations and Regional Impact
Ojulari assured the public that the oil drilling in Kolmani would resume soon, alongside other major infrastructure projects, such as the Ajaokuta-Kaduna-Kano (AKK) gas pipeline. He expressed confidence that these projects would help revitalize local industries, create employment, and boost economic growth in the northern region.
“We will continue oil drilling in Kolmani and other locations. Alongside this, we will complete the AKK gas pipeline, ensuring the return of previously closed businesses and the opening of new ones,” Ojulari stated. He emphasized that these projects would lead to wealth creation for the region and the nation as a whole.
Oil Prices and Revenue Challenges
The NNPC boss also addressed the recent global crude oil price crash, which has impacted Nigeria’s expected oil revenues. He acknowledged that the country had not received the anticipated income from oil sales, which had been factored into national development projections.
Ojulari, however, expressed hope that by reducing operational costs, the NNPC could still generate sufficient revenue from oil and gas sales to support the country’s development goals. “If we can reduce the operation costs, the revenue from selling oil and gas could still meet our needs,” he added.
NNPC and Dangote Refinery Dispute
In the same interview, Ojulari discussed efforts to resolve the ongoing rift between the NNPC and Dangote Petroleum Refinery. While acknowledging past tensions between the two entities, Ojulari highlighted that discussions were underway to build a more collaborative relationship for the benefit of the nation’s oil and gas sector.
He praised Aliko Dangote, the owner of Dangote Refinery, for his constructive efforts to address the conflict. “We sat down and discussed the issues. Moving forward, we will work together to ensure a steady fuel supply for the nation,” Ojulari said.
Looking Ahead
Ojulari concluded by stressing the importance of collaboration in achieving Nigeria’s energy and economic goals, noting that the NNPC is committed to making the necessary investments in infrastructure and partnerships to support national growth.
