[size=15pt]NNPC to begin oil exploration in the north next month [/size]

By Obinna Ezeobi, Abuja
Published: Saturday, 16 Aug 2008
The impression that oil is the preserve of the Niger Delta could change soon, because the Nigerian National Petroleum Corporation is to commence the detailed exploration of oil in the northern part of the country next month.

The NNPC Acting Group Managing Director, Alhalji Abubakar Yar’Adua, who announced this in Abuja on Friday while giving an account of his one year in office, stated that the exploration will be done with the latest 3D technology. He explained that the efforts would be directed at the Chad Basin, Bauchi and the Benue basins, which according to him had oil reserves.

He dismissed insinuations that government was deliberately refusing to explore oil in the North so as to exhaust the reserves in the Niger Delta, adding that international oil companies were willing to do business anywhere they could find oil. Yar’Adua said, “Former exploration work in the region was done on 2D. But 3D is better as it will give you better perspectives. I believe that Nigerians will be happy if we discover oil there.”

The GMD claimed that under the past year, crude oil production had been maintained at an average of two million barrels per day with a reserve base of 3.3 billion barrels for both the Joint Ventures and Production Sharing Contracts. He added that this was achieved despite the community obstruction and incidences that militated against realisation of full potential of the country in terms of crude oil production.

He said, “The operators have successfully re-entered the western swamp operations and secured over 100,000 b/d production from Shell and Pan Ocean JV fields out of about 400,000b/d hitherto locked-in due to pipeline attacks.” Yar’Adua noted that Agbami Floating Production Storage and Offloading vessel achieved first oil on July 24 2008 at an initial production level of 65,000 to peak at 232,000b/d. He added that the Akpo FSPO had also sailed away in June 2008 and was expected to arrive Nigeria by the end of August, with installation and commissioning to commence immediately while its peak production was expected to be 175,000b/d.

On the refineries, Yar’ Adua said the Warri Refinery and Production Company had achieved an average capacity utilisation of 80 per cent in the first half of 2008 and was currently processing at 100 per cent. He added, “The Kaduna Refinery and Production Company fuel plant is now running at 68 per cent capacity and the Lubes plant which has just been successfully commissioned is now running at 60 per cent capacity due to crude constraints.

“The Port Harcourt Refinery and Production Company continues to face peculiar challenges which culminated in the destruction of the Port Harcourt jetty by fire in December 2007.

“This incident drastically impacted on our import and product evacuation capabilities. There was also a fire incident on the refinery cooling tower in April 2008 but efforts are ongoing to repair the damage”

“Despite the challenges, the refinery operated at 60 per cent capacity utilisation until last week when it was shut due to fuel oil ullage constraints.”

[size=20pt]hurray!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!![/size]

[size=15pt]abracadabra the more you hear, the less you understand[/size]