The Nigerian National Petroleum Company Limited (NNPCL) is set to resume oil drilling activities in the northern part of the country, a move that could reignite economic prospects and energy security in the region.

This disclosure was made by the Group Chief Executive Officer (GCEO) of NNPCL, Bayo Ojulari, during an interview with BBC News Hausa on Monday.

 

The announcement comes over two years after the initial crude oil drilling project, launched by the administration of former President Muhammadu Buhari on the border of Bauchi and Gombe states, was suspended for undisclosed reasons. This suspension had left many northerners, who had expressed joy at the prospect of their region becoming an oil-rich zone akin to the Niger Delta, disappointed.

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Ojulari, confirming the revival of the project under his leadership, urged residents of the region to remain calm, assuring them that the national oil firm would return to work.

 

“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.

He further elaborated on the potential benefits of these projects, emphasizing that they would facilitate the reopening of previously closed companies and the establishment of new ones.

 

“This will bring benefits to the region, which will lead to everyone benefiting because wealth will increase. Therefore, we must return and continue this project,” he added.

It would be recalled that in November 2022, former President Buhari officially launched a crude oil drilling project in the Kolmani area, marking the first time oil exploration had commenced in the North. Following this, NNPCL had also announced plans to begin crude oil drilling in Nasarawa State in March 2023, a project that has yet to materialize, prompting public demand for explanations regarding its suspension.

 

In the interview, Ojulari, who also identified as a northerner, expressed surprise at some reactions to his appointment and called for nationwide support and prayers to ensure the successful development of both the region and the country.

 

NNPCL and Dangote Refinery Set to End Rivalry, Foster Collaboration

In a significant development for Nigeria’s energy sector, the NNPCL GCEO also addressed the ongoing disagreement between the national oil company and the Dangote Petroleum Refinery.

Acknowledging the past rift, Ojulari disclosed that efforts are underway to build a mutually beneficial relationship between the two entities for the greater good of the nation.

 

In March, under the former GCEO Mele Kyari, NNPCL had briefly halted the naira-for-crude deal with Dangote, which led to a rise in petroleum product prices before the Federal Government intervened to reinstate the deal indefinitely.

Speaking on the seemingly unhealthy rivalry, Ojulari confirmed that “peace is returning” between the two organizations, commending Aliko Dangote’s commendable efforts towards this resolution. He underscored the critical need for both entities to collaborate to ensure energy security for Nigerians at fuel stations.

 

“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,” Ojulari affirmed. He further assured that any future issues or mistakes would be resolved through mutual understanding, emphasizing, “there will be no more disputes between NNPC and Dangote refinery. We will join hands for the benefit of Nigeria.”

 

Global Crude Price Slump Affects Revenue Projections, Cost Reduction Efforts Underway

Addressing the impact of global oil prices, Ojulari stated that the crude price crash had resulted in the country not receiving its projected revenue. “The budget was drawn with the prediction that if oil were sold, money would be available to be used for national development projects,” he explained.

 

Despite this challenge, he highlighted ongoing efforts to reduce operating costs within the oil business. “If we can reduce the operation costs, it is possible that the income we will get from selling oil and gas will be enough for us,” Ojulari concluded, outlining a strategy to mitigate the effects of fluctuating global crude prices.