NewStats: 3,262,856 , 8,178,371 topics. Date: Tuesday, 03 June 2025 at 08:09 PM 1p462p

By Kingsley Jeremiah, Abuja


Though National oil companies (NOCs) across the world are estimated to cut exploration budgets by $5 billion to around $14 billion this year, the Federal Government has stated that the plan to explore prospects of hydrocarbon in the Northern region of the country will continue.

The Minister of State for Petroleum Resources, Timipre Sylva, who had earlier disclosed that one billion barrels of crude oil were discovered in North-east stated that the Federal Government may consider scalable options that would ensure that the resources are harnessed and possibly processed in the region to reduce cost.

Considering that the prevailing market realities, as well as the outbreak of coronavirus, has disrupted international oil market, crashing price to record low, tracking well plans of 11 top spending NOC explorers, including three Chinese NOCs, PTT Exploration and Production Public Company Limited (PTTEP), Malaysia’s PETRONAS, India’s Oil and Natural Gas Corporation (ONGC), Qatar Petroleum, Rosneft, Gazprom, Petrobras and Pemex, would collectively slash the budget by about 26 per cent.

“When asked if the current reality in the international market was encouraging to continue exploration at the inland basins, especially with the difficulty and likely expensive geological location, Sylva said: “The discovery at the inland basin has been announced but will it be viable when oil prices are low? We are looking at various options.

“One of it is to create a hub around the production so that instead of pipping the crude oil from the North, we can create a development corridor around that product. We can build a refinery there and create businesses from the production using the oil as feedstock. We may not export but create development activities around the production.”

According to him, if the oil is discovered around the country and such corridors are created, the move will bring development and growth.

Sylva had earlier told journalists that more crude oil would still be discovered and explored in other parts of the country.

However, Wood Mackenzie Senior Analyst, who analysed spending of oil state-oil-firms, Huong Tra Ho said: “While the range of exploration budget cuts for the NOCs is slightly more diversified than that of the Majors, conventional exploration remains important for them.

“Most NOCs consistently spent between 12 per cent and 35 per cent of their upstream budgets on exploration, an average of about 17 per cent over the 2015-2019 period. This is significantly higher than the majors’ average spend of 8 per cent of upstream budgets on exploration.”

Just like Nigeria, WoodMac stated that NOCs with substantial international presence would prioritise domestic activity, with deeper cuts to the overseas budget.

Ho said: “Most NOCs on the list carry strong government mandates. Many NOCs prioritise current revenue and contribution to government budgets at the expense of capital investments for the future. A dollar invested at home remains at home in the form of local employment, local services, taxes and government take.”

According to the think-tank, NOCs with constrained domestic resources could place more strategic importance on exploration compared to those with resource abundance, stressing that organically added resources would contribute between 50 per cent and 70 per cent of their production in the next decade.

“Another key factor to ing exploration plans is financial strength. With strong balance sheets, Petronas, PTTEP and CNOOC Ltd are more able to continue with most of their high-impact exploration ambitions.

“Some NOCs can achieve meaningful absolute savings from exploration cuts, especially if it originally makes up a big portion of the company’s upstream budget. An example is Sinopec, whose exploration spend consistently s for a quarter or more of upstream budget; in which case cutting back exploration significantly contributes to necessary savings.

“Exploration budget cuts while necessary today, will impact companies’ future growth and sustainability. Given how important exploration is for the NOCs and their growing share of global new discoveries, these budget cuts are likely short-term measures rather than long-term. We expect NOCs to revitalise their exploration programmes as the sector recovers,” Ho said.

Source: https://m.guardian.ng/energy/despite-nocs-budget-cut-fg-explores-options-for-oil-in-north/

We can build a
refinery there and create businesses from the
production using the oil as feedstock.

Nigeria is a total joke, dangling in APC's hand...

Imagine building another refinery when the one's we have hasn't produce a drop since February last year..

The Federal Government has stated that the plan to explore prospects of hydrocarbon in the Northern region of the country will continue.

Imagine my lack of shock. They're committed to discovering a commercial oil well no matter the cost like Niger Republic. They just want to develop the region with more oil revenue and make it more energy independent i.m.o.

We can build a refinery there and create businesses from the production using the oil as feedstock. We may not export but create development activities around the production.”

This is big talk from the guys who cant get their current refineries working. Any major refining will probably be done by private sector. Niger Republics oil pipeline has been on hold over this price drop.

Blue3k:


Imagine my lack of shock. They're committed to discovering commercial oil well no matter the cost like northern neibors. They just want to develop region with more oil revenue and make it more energy independent i.m.o.



This is big talk from the guys who cant get their current refineries working. Any major refining will probably be done by private sector. Niger Republics oil pipeline has been on hold over this price drop.

Pls, which of the states in northern Nigeria has oil?

Lol.
Why will the Federal government spend billions of Naira in search of oil, when they suppose to use the money to revive our Refineries.

Or Ajaokuta steel

Sammy07:


Pls, which of the states in northern Nigeria was oil discovered?

Type it into search bar.

Lol this oyel in the North is always a source of anguish for many

Blue3k:


Type it into search bar.

Okay, this is what I found. Cos I've been hearing oil in northern Nigeria and the state wasn't mentioned.

It has discovered crude oil, gas and condensates in the Kolmani River region at the border community between Bauchi and Gombe states

vedaxcool:
Lol this oyel in the North is always a source of anguish for many

Where's the oil?

Desperados

Na shea butter oil dey North

We all focused on Coronavirus. By the time we are done APC would have corroded Nigeria's map off the Atlas.

Madness

I hope if oil is found in the north, the west and east will tap bountifully from the largese?

To be sincere, something must be done about these northern cabal before things get out of hands. They always think upsidedown. The amount of money they have wasted on fruitless search for oil in that region is alarming. Something must be done cos 2023 is too long.

Blue3k:


Source: https://m.guardian.ng/energy/despite-nocs-budget-cut-fg-explores-options-for-oil-in-north/

Bubu bubu bubu...how many times I call u

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Sammy07:


Okay, this is what I found. Cos I've been hearing oil in northern Nigeria and the state wasn't mentioned.

Interesting that would mean they would most likely export the crude out Akwa Ibom in the future. They would just need to build the deep first. There's been no updates about this discovery since last year so we'll wait see what happens.

These are just heavy expense heads so heavy approvals can be made..

Humanitarian minister - we must feed school children

Information minister - we must equip NTA with 500BN

NASS - We must renovate assembly with N37bn

Science minister - We must develop nuclear energy.. etc..

Aviation minister - Nigerian Air..

There is always a pattern, yet istration after istration, we are still at square one.

Why can't FG look beyond natural resources

This is 21st century for goodness sake

There was a time we don't depend on crude oil, gold etc but Nigeria was better than what we have now

If we invest heavily on agriculture, we can become big exporter & generate more forex

FG should stop putting all egg in one basket

Sammy07:
Lol.
Why will the Federal government spend billions of Naira in search of oil, when they suppose to use the money to revive our Refineries.

Or Ajaokuta steel

Sad!


P.S. @Morray: your brain is of 2 parts: 'left side' and 'right side'. There's nothing right on the left side, and nothing left on the right side, and you wonder why people call you stupid!

Billions in the bag

Nigeria will soon break up...

Even the north know that,The oil in the north is being reserved for future use.

Ask yourself why the delay in oil exploration in Lake Chad

This is a political game... For now every region is just feasting on Niger Delta oil

Na when Nigeria break up, na there reality go hit everybody, the north is preparing for this break up! But everybody is blind to see that

vedaxcool:
Lol this oyel in the North is always a source of anguish for many

Imaginary oil

Let them keep deceiving themselves and wasting funds.

Good luck with them
visionless leaders
myopic fools

Let me read first. I have always known this that any day Aboki happens to find oil, that will be end of Nigeria. By then eye go clear the whole south

It's only a fool who keeps repeating an action and expects a different result.

The North will not rest till they find oil..simple

You see all this talk about diversification of the economy and agriculture...it is all talk because it requires hard work

Oil is the lazy way out...spend billions exploring. Sell oil blocks and reap royalties.

It is a Northern Agenda

Shameless people. My uncle who worked as a drilling engineer said there are traces of some oil there and gas but not in commercial quantities like in Niger delta. But the northerners dont care and say they must keep searching

That's has always been the plan,

Once discovered in commercial quantity they will invite the director to the table for discussion.

SMH. When other countries are planning life without oil