Northern Nigeria set for Oil drilling restart as NNPC Chief promises progress

NNPC’s new boss, Bayo Ojulari, announces resumption of oil drilling in northern Nigeria and efforts to mend ties with Dangote Refinery

Hope is on the horizon for northern Nigeria as the Nigerian National Petroleum Company Limited (NNPC) under its new Group Chief Executive, Bayo Ojulari, has pledged to resume long-suspended oil drilling projects in the region.

Also read: NNPC Ltd GCEO Bashir Ojulari unveils $60 billion growth agenda to redefine Nigeria’s energy future

Speaking to BBC News Hausa on Monday, Ojulari confirmed that the initiative, initially launched over two years ago by the administration of former President Muhammadu Buhari in the Bauchi-Gombe border area, would be revitalised.

The announcement comes after a period of uncertainty that saw the promising project stall for undisclosed reasons, much to the disappointment of northerners who had anticipated the economic benefits of becoming an oil-producing region.

Ojulari appealed to residents for patience, assuring them of the NNPC’s commitment to returning to work on the Kolmani oil field and other identified sites.

“We will continue with the oil drilling in Kolmani and other places. After the oil drilling, we will also ensure that we complete the gas pipeline from Ajaokuta to Kano,” Ojulari stated, outlining the broader vision for energy infrastructure development in the north.

He emphasised the potential for these projects to revitalise dormant industries and spur the creation of new businesses, ultimately leading to increased wealth and opportunities for the local population. “Therefore, we must return and continue this project,” he affirmed.

The Kolmani oil drilling project, launched with considerable fanfare in November 2022, marked a historic moment as the first oil exploration endeavour in the northeast.

“We will continue with the oil drilling in Kolmani and other places. After the oil drilling, we will also ensure that we complete the gas pipeline from Ajaokuta to Kano.” – Bayo Ojulari

Following this, the NNPC had announced plans to commence drilling in Nasarawa State in the north-central region by March 2023, a timeline that was not met, prompting calls for explanation from Nigerians.

In the BBC interview, Ojulari, himself a northerner, expressed surprise at some of the reactions following his appointment.

He called for the support and prayers of both northerners and the wider Nigerian populace to facilitate progress in the region and across the nation.

In a significant development for the downstream sector, Ojulari also revealed that he has initiated steps to resolve the existing disagreements between the NNPC and the Dangote Petroleum Refinery.

Acknowledging the previous strained relationship, he commended Aliko Dangote for his efforts towards reconciliation and stressed the importance of a collaborative partnership to ensure energy security for Nigerians.

The NNPC and the Dangote refinery had reportedly been in competition, particularly concerning crude oil supply, since the refinery commenced operations.

A notable point of contention was the NNPC’s brief suspension of the naira-for-crude deal in March, which led to price fluctuations before a federal government directive mandated its continuation.

Ojulari expressed confidence that a new era of cooperation was dawning. “We sat down and talked about the conflict.

From now on, we will work together to achieve progress as needed, so that people who seek fuel at filling stations can get it when they want it,” he said, assuring that future issues would be addressed through mutual understanding rather than disputes. “We will join hands for the benefit of Nigeria,” he added.

Addressing the broader economic context, Ojulari noted that the global crude oil price downturn had impacted Nigeria’s projected revenue.

Also read: Dangote, NNPC pledge collaboration for Nigeria’s energy security

He stated that while the budget was predicated on higher oil prices, efforts were underway to reduce operational costs within the oil sector to ensure sufficient income for national development.