SAN FRANCISCO, December 16, (THEWILL) – The Federal Government revealed on Thursday that crude oil has been discovered in the troubled state of Borno. This is coming months after lots of exploration activities.
This was as oil prices jumped on Friday as evidence increased that producers in the Middle East were informing customers of upcoming supply cuts as part of a coordinated effort to drain a global glut. This is as planned production cuts start to materialise.
Brent crude futures were trading at $54.11 per barrel, up nine cents from their last settlement, while the United States West Texas Intermediate, WTI, crude was up 18 cents at $51.08 per barrel.
President Muhammadu Buhari had earlier asked the Nigerian National Petroleum Corporation NNPC to resume oil and gas exploration in the Chad Basin, with the Group Managing Director, GMD, of the NNPC, Maikanti Baru stating that the Chad Basin was prolific and would not be left untapped.
But speaking during the agreement signing ceremony for joint venture, JV, cash call exit and presentation of the petroleum sector score card in Abuja, the Permanent Secretary in the Ministry of Petroleum Resources, Mrs. Jamila Shua’ra, attributed the discovery of oil in Borno and Lagos states to the doggedness of the present administration.
She was however silent on the particular area in Borno State where the oil was discovered and if the discovery was in commercial quantity.
In the scorecard presented to stakeholders, the ministry also pointed out that the introduction of Price Modulation Mechanism and Appropriate Pricing Framework had helped the Federal Government to save N1.4 trillion that would have been expended on subsidy payment between May and November.
The ministry also announced that the Department of Petroleum Resources, DPR, would by next year conduct bid rounds for open blocks and conclude the previously aborted marginal fields bid round to enhance the entry of new players, stimulate competition and generate revenue for the government.
