Federal Government has revealed plans to extend oil and gas exploration into new fields in the Lake Chad Basin in the North East and in coastal states, like Lagos, where oil has been discovered in commercial quantity.
President Buhari spoke through Vice President, Yemi Osinbajo at the 6th African Petroleum Congress and Exhibition hosted in Abuja, which had the theme: ‘Positioning African Petroleum for Global Development and Value Addition’.
VP Yemi Osinbajo, disclosed that, as part of strategies to re-position the Nigerian oil and gas industry, his government had commenced the process of implementing carefully conceived initiatives which would see the country hitting a production target of 2.8 million barrels per day (bpd) of crude oil.
Some of these initiatives include strengthening the institutional framework on policy formulation through legislation on the Petroleum Industry Bill as a prerequisite for the development of the sector and attraction of foreign investment, unbundling the national oil company, that is the Nigeria National Petroleum Corporation, into lean, efficient and profitable components that will operate as a business venture and deploy existing manpower to areas of competences without attendant job losses.
Others are to develop stronger policies on local content so as to reduce the high cost of production of machine components, services and capital flight in the industry, reduce production costs and encourage efficiencies in oil exploration so as to achieve a 30 per cent increase in daily production levels (to about 2.8mbpd), expand oil and gas exploration into new fields that have discoveries in commercial quantities in the North-East (Lake Chad Basin) and coastal states (Lagos), reduce gas flaring through Joint Venture contracts that will expand infrastructure, and deploy LNG for domestic and industrial uses.
Read Also: China Requests More Crude Oil From Nigeria
The President urged investors at the gathering to consider investing in Nigeria, as he assured them that the country was safe for their investments, as Nigeria had overcome the security challenges hitherto posed by Boko Haram terrorists and extremists in the North-East.
VP Osibanjo announced that Nigeria is ready and accessible for investments from all interested countries, individuals and partners. Assuring that investments are secured in Nigeria and a high return on investment is assured.
The President also told delegates at the congress that if Africa must meet her future energy needs, the development of a robust gas infrastructure must be jointly addressed.
He stated that currently Nigeria had the seventh largest gas deposit in the world and the best quality, which is rich in liquids and low in Sulphur, adding that in processing Africa’s hydrocarbon resources, environmental issues must be accorded high priority.
“Reserves are put at over 185 trillion cubic feet and undiscovered reserves estimated at 400 TCF, with a capacity to peak to 600 TCF. Nigeria has established the Nigeria Gas Company to provide gas transportation to newly established power plants and to facilitate domestic energy supply.”
Buhari noted that globally, over 150 billion cubic metres of associated gas were being flared annually, of which Africa was flaring an estimated 40 billion cubic metres annually.
Have You Seen: FG To Stabilize The Price Of Rice After Easter