Crude Oil in Borno Borno State is now the newest member of the league of oil-producing states in Nigeria. With Crude oil in Borno found after ser
Crude Oil in Borno
Borno State is now the newest member of the league of oil-producing states in Nigeria.
With Crude oil in Borno found after series of exploration, the discovery has opened up new opportunities for local and foreign investments in the supply chain of the oil and gas sector in Nigeria.
The permanent secretary of the Ministry of Petroleum Resources, Mrs. Jamila Shua’ra, said this at the agreement signing ceremony for joint venture, JV, cash call exit and presentation of the petroleum sector score card in Abuja.
She did not mention the specific area where the Crude oil in Borno State was found or whether it is of commercial quantity.
What she did though, was link the discovery of oil in Lagos and now in Borno state to the determination of the Buhari government.
She also stated that the introduction of Price Modulation Mechanism and Appropriate Pricing Framework had assisted the Government to save N1.4 trillion which would have been used to subsidize payment between May and November.
In this light, the Department of Petroleum Resources (DPR) would in 2017 conduct bid rounds for open blocks and round off the previously abandoned marginal fields bid round to aid entry of new players in the oil sector, fuel competitiveness and earn revenue for the government.
Also, vice president Yemi Osinbajo revealed that the termination o f petroleum subsidy had taken off a massive financial load off the federal government, thus making it possible to increase the country’s domestic refining capacity for petroleum products by overhauling the current refineries, licensing modular refineries and supporting the construction of private-led refineries.
Recently, the Federal Executive Council approved new measures and strategies aimed at eliminating the burden of joint venture cash calls arrears and easing future payments in the upstream sector. The measures will boost additional investments and raise daily production levels to about 2.8 million barrels per day. – V.P Osinbajo
The minister of State for Petroleum Resources, Mr. Ibe Kachikwu also made it known that before removing fuel subsidy, Nigeria losing over N1.2 trillion annually and fuel scarcity was the norm.
Now, the elimination had caused refined petrol consumption to reduce from an all-time high of 40 million litres daily to 28 million litres daily.
On the JV cash call exit, Kachikwu was positive that the arrangement would result in outbreak of investments in the oil and gas industry and ensure that abandoned projects by international oil companies were resuscitated.
Involved in the new cash call funding model are Chevron, Shell, Total, Nigerian Agip Oil Company and ExxonMobil.
Kachikwu challenged the oil companies to increase their investments in Nigeria.
Finally, the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mr. Maikanti Baru, said that the cash call exit would help sort out the longstanding issues of unpaid cash call debts, not enough funding of the joint venture and the burden of monthly cash call payments by the Buhari government.