Voice of America
23 Nov 2022, 11:35 GMT+10
Abuja, Nigeria - Nigeria began drilling for oil and gas in the northeast on Tuesday, a first for the African oil giant, which has exploited large deposits in the south for decades and whose production is declining.
President Muhammadu Buhari visited the Kolmani field, located in Gombe and Bauchi states and with estimated reserves of over 1 billion barrels of crude, to inaugurate the drilling site.
'The successful discovery of the Kolmani Oil and Gas field by NNPC [Nigerian National Petroleum Company Limited] and her partners has finally broken the jinx' after long efforts to find commercial oil and gas outside the established Niger Delta Basin, Buhari said in a statement.
In addition to drilling, the project - which has attracted $3 billion in investment - aims to open an oil refinery, a gas processing unit, a power plant and a fertilizer factory, according to the presidential statement.
Buhari in his comments also urged the oil company and partners 'to ensure all lessons learnt from our years of experience as an oil-producing nation are utilized to ensure harmonious relationship with the local communities.'
Oil exploitation in Nigeria began in the 1960s in the southeastern Niger Delta region.
Decades of production have enriched government officials and generated huge profits for large foreign companies in particular, but the majority of Nigerians, especially in the oil-rich Delta region, continue to live in poverty.
The region suffers badly from pollution, and tens of thousands of people now make a living from stealing crude oil from pipelines or at sea, from illegal refineries that have sprung up in swampy and forested areas, and from selling fuel on the black market, causing ecological disasters.
Nigerian Authorities Hopeful After Massive Oil Theft Busts
This insecurity in the sector has significantly increased the cost of producing Nigerian oil, and major foreign oil companies are now ceding their share of onshore oil fields to focus on offshore operations.
In September, Nigeria lost its position as the largest oil producer on the African continent to Angola as its oil production continued to decline despite rising prices linked to the Russian offensive in Ukraine.
In addition to a severe economic crisis, Africa's most populous country also faces widespread insecurity, with attacks by criminal groups and a jihadist insurgency in the north, and separatist unrest in the southeast.
Gunmen Abduct More Than 100 in Nigeria's Zamfara State
In the face of these problems, Nigerian voters will go to the polls in February to elect a successor to Buhari, who is stepping down after two terms.
On Tuesday, Buhari also reiterated Nigeria's goal to achieve net zero carbon emissions by 2060.
Get a daily dose of Africa Leader news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Africa Leader.
More InformationGENEVA, Switzerland: A new United Nations report alleges that dozens of global corporations are profiting from and helping sustain...
LONDON, UK - Lawmakers in the United Kingdom have voted overwhelmingly to proscribe the direct-action group Palestine Action as a terrorist...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
ISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...
VENICE, Italy: Over the weekend, hundreds of protesters marched through the narrow streets of Venice to voice their opposition to billionaire...
NEW YORK, New York -U.S. stock markets closed with broad gains on Thursday, led by strong performances in U.S. tech stocks, while European...
LONDON/STOCKHOLM: The Persson family is ramping up its investment in the H&M fashion empire, fueling renewed speculation about a potential...
PARIS, France: L'Oréal is making a fresh play in the booming premium haircare segment with a new acquisition. The French beauty conglomerate...
MENLO PARK, California: Robinhood is giving European investors a new way to tap into America's most prominent tech names — without...
NEW YORK, New York - U.S. stocks diverged on Wednesday for the second day in a row. The Standard and Poor's 500 hit a new all-time...
NEW YORK CITY, New York: The U.S. dollar continues to lose ground, weighed down by growing concerns over Washington's fiscal outlook...