The recent oil exploration activities initiated by the Federal Government in the North East, especially the Lake Chad Basin, seems to have started yielding results as there are reports that crude oil has been discovered in Borno State.
The Federal Government revealed the information through the Permanent Secretary of the Ministry of Petroleum Resources, Mrs. Jamila Shua’ra.
Mrs. Shua’ra was speaking during the agreement signing ceremony for joint venture, JV, cash call exit and presentation of the petroleum sector score card in Abuja. She did not however, state the area in which the oil was discovered and the quantity of deposit.
We cannot ascertain if the crude oil discovered is in substantial quantities that will warrant a commercial venture.
Mrs Shua’ra attributed the discovery of oil in Borno and Lagos states to the doggedness of the present administration. In the scorecard presented to stakeholders, the ministry also noted that the introduction of Price Modulation Mechanism and Appropriate Pricing Framework had helped the Federal Government to save N1.4 trillion that would have been expended on subsidy payment between May and November.
Also, the ministry announced that the Department of Petroleum Resources (DPR) would in 2017 conduct bid rounds for open blocks and conclude the previously aborted marginal fields bid round to enhance the entry of new players, stimulate competition and generate revenue for the government.