NNPC to invest N58b in Chad Basin's oil search

[gogannaka]

THE Nigerian National Petroleum Corporation (NNPC) is to invest around $500 million, about (N58 billion), in the resumption of oil and gas exploration in the Lake Chad Basin.

The exploration will start next month with the hope that oil will be struck in large commercial quantities to justify the investments in the North.

The Group Managing Director of NNPC, Alhaji Abubakar Lawan Yar'Adua, disclosed this at the weekend in Maiduguri, the Borno State capital, while seeking the support of Shehu of Borno, Alhaji Mustapha Umar El Kanemi and other traditional rulers in the state at his palace.

Fielding questions from reporters on the resumption of prospecting for oil, Yar'Adua said exploration in the Basin would resume fully in November 2008.

He disclosed that field personnel would be deployed to the Lake Chad Basin area to work for a period of 12 to 18 months.

He said: "We will also be expending between $300 million and $500 million in the project," hoping that by the end of 2009, NNPC would be able to strike oil in large commercial quantities to justify the huge investments in the oil exploration in the Basin."

Yar'Adua added that the Nigerian Petroleum Development Company (NPDC), an upstream subsidiary of the NNPC, would be saddled with the drilling responsibility in the Lake Chad Basin areas of Borno State.

He explained that as a limited liability company, NPDC should have the leverage to scout for funds for its operations.

"They can look for credible investors with the technical know-how and financial muscle or go to the capital market to raise funds," he said.

He, however, debunked the claims that past projects in the Basin were abandoned for political reasons.

"There was nothing political in the suspension of exploration activities. It was just a matter of funding and acquiring more advanced technology," he said.

He added: "Conscious of the experience gathered in oil and gas exploration and exploitation in the country over the years, we will take care of any environmental issues in the Basin."

The Shehu assured Yar'Adua and NNPC of his support and that of the communities in the areas toward the success of the commercial oil finds.

He commended Yar'Adua for his drive and said: "I have known you for long. I have no doubt in your abilities. You will do the job."

El Kanemi prayed God to guide Yar'Adua and the NNPC as they embark on the oil project.

Yar'Adua had during the courtesy visit informed the Shehu that "because oil has been found in commercial quantities in Chad, Niger and Central African Republic, all neighbours of Borno, for sure, it will be found in Borno."

He stressed the need to engage mainly the NNPC staff and Borno State indigenes in the execution of jobs in the Basin.

[neozizo]

I hope what the MD is saying about thev politics envolved is true,
i beleive this is too serious a matter.
I hope it turns out positive

[HUSNAA]

If only the money could be used to boost agriculture in the north, that would have been the better option. The major oil consumers are always looking for ways to become less reliant on oil, but at the same time, there is food shortage all over the world an in part bcos of the west's attempts to make biofuel from food. So it only makes sense to boost agriculture to supply the food for human consumption and also invest in that wonder tree that ppl are touting these days as an alternative biofuel to crop staples.

[neozizo]

The Chad basin area is particularly meant to be a hub for agricultural activities for the african sub-region but as our (nothern)govts and businesspeople have failed to take advantage maybe the other side should have a go.

[HUSNAA]

They took advantage, it went horribly wrong cos there was no impact assessment

[gogannaka]

The impact assessment for the oil or agriculture?

[HUSNAA]

The impact assessment for the oil or agriculture?

Agriculture.
One of the things that lent to the shrinking of lake chad is the construction of dams upstream of the lake.The headwaters coming from Jos Plateau or thereabouts are diverted in many places.In Nigeria we have Kano state as a famous example with Tiga Dam.We also have South chad Irrigation Project which went bust with lowering of lake water.  In Cameroon kuma there was the waza logone flood plains which went dry at one time bcos the logone or chari had been dammed for rice production somewhere. sannan kuma ga climate change, ga lake chad is so shallow only about 7 m in depth altogether. Gashi it is a closed basin therefore very climatically sensitive.Lokacin da ake all these dam buildings no one did any modelling to assess the impact of reduced discharges into the lake, well at least not on the nigerian side at any rate. Maybe if someone had done so, a balance would have been struck in which the dimensions and number of dams to be built would have been assessed so that there wouldnt have been such a negative  impact on the lake itself many yrs down the line.