fogn.png
Tuesday December 6th, 2022 9:53PM

Nigeria drills for oil in new field as theft erodes earnings

By The Associated Press
Related Articles
  Contact Editor

ABUJA, Nigeria (AP) — Nigeria on Tuesday began drilling oil and natural gas in the country’s northern region, anticipating a boost to the nation's finances even as the new energy supplies face the threat from theft and extremist activity.

President Muhammadu Buhari flagged off the drilling within Kolmani oil field in northeast Gombe and Bauchi states, making it the first area where oil is being drilled outside the southern Niger Delta region. It has a reserve of up to 1 billion barrels of crude.

The drilling began nearly three years after Nigeria announced the discovery of oil in commercial volume in the region, which is embroiled in a decadelong war against Islamic extremists. Analysts have raised questions about security measures to protect energy facilities there, while there are environmental concerns about tapping into more climate-changing fossil fuels.

Crude oil has been critical in expanding infrastructure in the West African nation, accounting for 41% of total federal government revenue in 2021 and 4.34 trillion naira ($10.1 billion) in earnings. However, oil theft has had a huge impact on the country’s finances and economy, which is Africa’s largest.

Government data shows Nigeria’s crude output in August averaged 972,394 barrels per day, a multidecade low, costing the country its spot as Africa’s top crude producer.

Officials project billions of dollars in earnings from the new oil project, which is being developed by the state-run Nigerian National Petroleum Company Ltd. in partnership with Sterling Global Oil and a conglomerate owned by Nigeria’s northern states called the New Nigeria Development Commission.

“We are pleased with the discovery of over 1 billion barrels of oil reserve and 500 billion cubic feet of gas within the Kolmani area, and the huge potentials for more deposits as we intensify exploration efforts,” Buhari said of the project, adding that it has attracted a $3 billion investment.

“The project promises many benefits and these include energy security, financial security, food security as well as (the) overall socioeconomic development of our country,” the president said.

The start of the drilling “marks yet another significant milestone in our collective quest as a nation to ensure energy security and access” for Nigeria's citizens, said the country's state petroleum minister, Timipre Sylva.

He anticipated more collaborations between the state oil firm and partners as it searches for oil in commercial quantity in other basins.

Officials said the Kolmani field would feature an oil refinery with a capacity of 120,000 barrels per day, a gas processing site of 500 million cubic feet per day and a power plant.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Industries, AP Business - Utilities
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Driver faces charges in connection with Apple store crash
Authorities say a man was arraigned Tuesday on charges that he crashed his SUV through the front window of an Apple store in Massachusetts
12:29PM ( 8 minutes ago )
'It's the reflex': Veteran helped disarm gunman at gay club
An army veteran who helped subdue the gunman at a gay club in Colorado Springs credits his military training and instincts in helping him disarm the attacker
12:09PM ( 29 minutes ago )
Taylor Swift ticket trouble could drive political engagement
On the heels of a messy ticket rollout for Taylor Swift’s first tour in years, fans are angry
12:07PM ( 30 minutes ago )
Associated Press (AP)
Catalonia limits water use as Spain prays for rain
Barcelona and large swathes of Spain’s northeast are going under water restrictions as an extended drought devastates crops and puts the pinch on human activities in the Mediterranean country
11:02AM ( 1 hour ago )
Thai marijuana boosters rally to keep drug decriminalized
Around 200 backers of Thailand’s liberalized marijuana regulations have rallied in Bangkok to protest the possible rollback of the drug's recent decriminalization
10:18AM ( 2 hours ago )
Thanksgiving might bring changes in holiday-travel habits
The holiday travel rush is already on, and it could spread out over more days than usual this year
10:14AM ( 2 hours ago )
AP Business
Italian premier presents economic measures on energy, family
Italian Premier Giorgia Meloni has presented the government’s first economic policy initiatives
7:37AM ( 5 hours ago )
'Stock up on blankets': Ukrainians brace for bleak winter
One of Ukraine's energy chiefs says rolling blackouts across Ukraine may continue through March
7:04AM ( 5 hours ago )
German extends energy subsidy plan for consumers, companies
Consumers and businesses in Germany will receive subsidies to soften the blow of higher gas and electricity prices starting in January, two months earlier than originally planned
6:48AM ( 5 hours ago )
AP Business - Industries
Consumers could pay price if railroads, unions can't agree
Consumers could quickly start seeing higher gas prices and shortages of some of their favorite groceries if railroads aren’t able to agree on contracts with al 12 of their unions ahead of next month’s deadline after the latest rejection vote Monday
6:00PM ( 18 hours ago )
Ukraine to civilians: Leave liberated areas before winter
Ukrainian authorities are evacuating civilians from liberated areas in the southern Kherson and Mykolaiv regions
4:12PM ( 20 hours ago )
Stocks slip; Disney soars after reinstating Iger as CEO
Stocks slipped on Wall Street to kick off a holiday-shortened week
3:12PM ( 21 hours ago )
AP Business - Utilities
Driver faces charges in connection with Apple store crash
Authorities say a man was arraigned Tuesday on charges that he crashed his SUV through the front window of an Apple store in Massachusetts
12:29PM ( 8 minutes ago )
'It's the reflex': Veteran helped disarm gunman at gay club
An army veteran who helped subdue the gunman at a gay club in Colorado Springs credits his military training and instincts in helping him disarm the attacker
12:09PM ( 29 minutes ago )
Taylor Swift ticket trouble could drive political engagement
On the heels of a messy ticket rollout for Taylor Swift’s first tour in years, fans are angry
12:07PM ( 30 minutes ago )
'Stock up on blankets': Ukrainians brace for horrific winter
Officials say Ukraine could face rolling blackouts through March because Russian airstrikes have caused what they call “colossal” damage to the power grid
11:53AM ( 44 minutes ago )
US renews push for COVID boosters as data show they protect
Americans who have gotten the updated COVID-19 boosters appear better protected against symptomatic infection than those who haven't — at least for now
11:51AM ( 46 minutes ago )