Oil discovery in Gongola Basin significant for national development, says NAPE

The Nigerian Association of Petroleum Explorationists (NAPE) has lauded the oil discovery in Gongola Basin, saying it is significant to oil and gas industry, for national development.

Mr Ajibola Oyebamiji, the NAPE President, gave the commendation at a news conference on Thursday in Lagos ahead of the association’s forthcoming 37th Annual International Conference and Exhibition Conference.

Oyebamiji said that the discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue trough, Gongola Basin, in the North-Eastern part of the country, was good for industry.

“The discovery of oil and gas in commercial quantity in the Gongola Basin will attract foreign investment, generate employment for people to earn income and increase government revenues,” he said.

Oyebamiji said that Nigeria had been at risk of long-term disruption to oil and gas supplies, power generation, a collapse of industries and significant loss of revenue due to continued reduction in hydrocarbon exploration activities.

He said that reduction in hydrocarbon exploration and exploitation had dire consequences for a country like Nigeria with a mono-economy hinged on crude oil.

Oyebamiji said: “The procurement and contracting cycles in the Nigerian oil and gas industry is about 36 months, making it the longest and most inefficient in the World.

“The long contracting cycle results in high levels of uncertainties in costing and planning, thereby creating a sluggish business climate.

“Insecurity, oil theft and illegal refining are bigger threats to the oil and gas industry in Nigeria than the declining price of oil.

“The current low oil price is rather a reflection of an over-supply of oil in the world market.

“In Nigeria, the low oil price regime has led to dwindling reserves, more burdens on foreign reserves, pressure on infrastructure and social services, inability to meet commitments to institutional lenders.”

On the conference, he said participants would be deliberating on the petroleum business and the regulatory environment with a view to addressing the challenges of exploration.

According to him, it will address the production in the onshore, offshore and Nigeria’s frontier basins, as well as seek new approaches for exploration and production in the Cretaceous and Cenozoic basins.

“The conference will also beam its searchlight on new technology application in exploration and production using big data, digitalisation, data analytics, artificial intelligence opportunities, etc.

“Participants at the conference will also be discussing the contributions of indigenous/marginal field operators and the imperatives of growing national reserves and grooming the next generation of E&P professionals,” Oyebamiji said.