From Juliana Taiwo-Obalonye, Bauchi
President Muhammadu Buhari has charged Nigerian National Petroleum Company Limited (formerly Nigerian National Petroleum Corporation), New Nigeria Development Company (NNDC), and their Strategic partners of the Kolmani Integrated Development Project (KIPRO) on the boundary of Bauchi and Gombe states to ensure all lessons learnt from the years of experience as an oil-producing nation are utilized to ensure harmonious relationship with the local communities.
This is even as he added that despite zero appetite for fossil fuel, his administration has been able to attract an investment portfolio worth $3 billion in the sector.
He made the call at the Presidential Flag-off of the Kolmani Integrated Development Project (KIPRO) on the boundary of Bauchi and Gombe states.
The KIPRO is an oil prospecting lease (OPL) 809 and 8 10 at the Kolmani field site located in the Gongola Basin of the Upper Benue Trough, the first oil drilling in Northern Nigeria.
He said he has obtained pledges from the Governors of Bauchi and Gombe States, and both have given the assurances of their unwavering commitment and willingness to ensure support and cooperation in these localities as this activity affects the local populations.
“I urge the NNPC Ltd, NNDC, and their Strategic partners to ensure all lessons learnt from our years of experience as an oil-producing nation are utilized to ensure harmonious relationship with the local communities”, he said.
Buhari described the occasion as important in the economic history of the nation as she 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.
He said: “This is indeed significant considering that, efforts to find commercial oil and gas outside the established Niger Delta Basin was attempted for many years without the desired outcomes.
“However, the successful discovery of the Kolmani Oil and Gas field by NNPC and her partners has finally broken the jinx record by the confirmation of a huge commercial deposits of hydrocarbons in Kolmani River field.
“This discovery had emanated from our charge to the NNPC to re-strategize and expands its oil and gas exploration footprints to the frontier basins of Anambra, Dahomey, Sokoto, Benue trough, Chad and Bida Basins. Similar activities across the other basins are currently actively on-going.
“We are pleased with the current discovery of over 1 billion barrels of oil reserves and 500 billion Cubic Feet of Gas within the Kolmani area and the huge potentials for more deposits as we intensify exploration efforts.
“It is good to note that the discovery has now attracted investment for an end-to-end integrated development and monetization of the hydrocarbon resources.
“As a fully integrated in-situ development project, comprising upstream production, oil refining, power generation and fertilizer, the project promises many benefits for the nation. This includes, but not limited to, Energy security, Financial Security, Food security as well as overall socio-economic development for the country.
“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 Limited to utilize 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.
“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 to attract investment of over USD 3 billion to this project.
“This will surely be a reference subject for favourable discussion in the industry as we pursue the just energy transition programme that will culminate in our country achieving Net-Zero position 1 by the year 2060.”
President of the Senate, Ahmad Lawan, on his part expressed happiness that the two states will soon receive 13 percent derivation as oil producing states.
He called for constitutional review of 13 percent derivation and Advocate for 3 percent for Host community development fund.
He stressed the need for the country to take the diversification of the economy.
He what happened in Niger Delta has been worrisome and advised operators of the new oil field to be conscious and mindful of how they sustain their activities so as not to contaminate the land as the people are mainly farmers. He appealed for environmental sustainability and expressed hope that there will be many more frontier basins in Nigeria.
Governor of Gombe, Muhammad Yahaya, assured that there will be no source for conflict because “all we are after is investments to create jobs for our teaming youth.”