NewsOil & Gas

New Oil Discovery in Nassarawa

The Group CEO of NNPC Ltd, Mele Kyari, announced it is set to spud -in the first oil well in Nassarawa State in March 2023, under the hydrocarbon exploration activities in the country’s inland basins. Analysts commend the exploration activities of the NNPC Ltd in the frontier basin, noting that it somewhat justified the commitment of 30% of NNPC profits to the Frontier Exploration Fund. However, analysts express worry about the fate of the new fields in northern Nigeria. Aside from low investment in the oil-rich Niger Delta, militancy and oil theft have eroded the existing investments in the sector. Being the hotspot of insecurity in the country, analysts worry that committing huge resources to explore oil in the north may rather enrich the rogues and terrorists. Analysts are also concerned that despite declaring this period as the decade of gas, no explicit provision is made for gas in the frontier basin, especially as the world is moving away from fossil fuels. Thus, with the Benin trough holding huge gas deposits, analysts say the Keana field discovered in Nasarawa should focus more on gas deposits. 

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