In a strategic move to enhance revenue from the oil and gas sector, the Federal Government of Nigeria has announced plans to commence exploration activities in several locations, including Ogun State, earmarked as a potential oil-producing region.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made this announcement during a visit to the governor’s office in Oke-Mosan, Abeokuta, on Friday.
Accompanied by key stakeholders in the industry, including Osagie Okubor, Managing Director of Shell Petroleum Development Company Ltd; Gbenga Komolafe, Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission; and Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPCL), Lokpobiri emphasized Ogun State’s significant potential within the Dahomey Basin, known for its substantial hydrocarbon deposits.
Lokpobiri highlighted the critical role of the oil and gas sector in driving Nigeria’s economic prosperity.
“Oil and gas remain the quickest way to Nigeria’s economic prosperity,” he said.
Reiterating this commitment, Mele Kyari, NNPCL’s Group Managing Director, assured that exploration activities would begin in earnest in Ogun State.
He expressed optimism about discovering oil in commercial quantities, positioning Ogun as a vital player in Nigeria’s oil production landscape.
On his part, Gbenga Komolafe, Executive Director of the Nigeria Upstream Petroleum Regulatory Commission, noted that the visit to Ogun State demonstrated the Federal Government’s dedication to expanding the country’s oil reserves and enhancing national revenue.
He pointed out that the Petroleum Industry Act (PIA) provides for the funding of frontier basin development, which includes the Dahomey Basin stretching across Delta, Edo, Ogun, and Ondo States.
“The PIA Section 9, Subsection 4, offers a legal framework for the aggressive exploration of oil in the Dahomey Basin, which will be beneficial for the people of Ogun State and align with the government’s reform initiatives,” Komolafe stated.
Ogun State Governor, Dapo Abiodun, responded positively, noting that Ogun is part of Oil Prospecting Licenses (OPLs) 302, 303, 306, and 307. He emphasized the unique opportunities these acreages present for qualifying as a Frontier Exploration State under the PIA.
“The historical data and studies support significant investments in the frontier exploration basin, which will not only realize oil and gas potentials but also advance bitumen exploration and exploitation in Nigeria,” Governor Abiodun stated.
He also highlighted the region’s advantages, including ease of access, low operating costs, a welcoming community, and active state government support.
Governor Abiodun concluded by stressing that successful exploration in Ogun State would lead to reduced import dependency and foreign exchange savings, particularly through bitumen extraction.
