DailyTrust 20170405-readme.ng

DAILY TRUST, Wednesday, April 5, 2017
BUSINESS
By Daniel Adugbo
Where are we so far
since President
Muhammadu
Buhari directed the NNPC
to increase the tempo on
search for crude oil in
the Lake Chad Basin and
Benue Trough?
Since Mr. President
gave the marching order
for renewed effort in the
search for hydrocarbons
at the inland basins, we
have made tremendous
progress. For the Chad
Basin, we actually
started the seismic data
acquisition in 2010 after
we obtained the approval
in 2009. Since then, up to
November 2014, we had
acquired over 1900km2
of 3D seismic data. Prior
to that (1976 - 1997) we
had drilled 23 wells based
on 2D data and only 2
wells encountered noncommercial
gas shows.
This 3D is an improvement
over the 2D which is
newer technology.
From the over 1900km2
(of 3D seismic data) we
have interpreted 1500km2
from which we have
identified some prospects
that have matured for
drilling and we have some
leads as well that have
been identified. These
leads will be further derisked
to a point that we
can drill. Prior to now in
the Benue Trough, Shell
Nigeria Exploration and
Production Company
(SNEPCO), Chevron and
Total had acquired some
2D data. Each of them
drilled a well to satisfy
the minimum work
commitment because
they also acquired juicy
acreages offshore. They
satisfied the minimum
commitment and pulled
out.
Only Shell made some
find of 33 billion cubic
feet (bcf)of gas and they
plugged the well and
abandoned it. All the
same we are going back to
look at the whole area and
other prospects because
the 2D that they acquired
we have reinterpreted
in-house and seen more
leads that we need to
pursue. Currently, we are
using 3D technology.
When do we expect a
significant breakthrough
from the renewed search?
Drilling requires a lot of
contractual process and
this process is going to be
like some 4 to 5 months
from now; the contractual
process for putting the
drilling rigs, accessories,
access roads takes some
time.
How badly has
insurgency affected
exploration activities in
the Lake Chad?
Yes, insurgency has
affected our operations in
the Chad Basin because
we had to suspend
operations on November
24, 2014. At the height
of Boko Haram we could
not go in there. But
now we have gotten all
the clearance from the
security agencies and
we have entered into
dialogue with the military.
Last week our operations
team visited the Nigerian
Army Field Commanders
in Monguno to discuss
our strategy for the reentry
to the Chad Basin.
The Integrated Data
Service Limited (IDSL-
NNPC), being the major
contractor for the 3D
seismic acquisition, in
addition to Bureau for
Geophysical Prospecting
(BGP-CNPC), the
Universities of Jos and
Maiduguri were in
attendance. So, we have
all the security back up to
re-enter.
What are NNPC's plans
for other inland basins
particularly the Bida,
Sokoto and Anambra
basins?
Severn Energy is
already producing gas
at the Anambra Basin.
So, we already know
that it is a producing
area. There is another
oil company exploring
and producing that is
causing some friction
between Anambra and
Kogi state communities
(ownership). So, that one
is exactly not a frontier.
For Bida and Sokoto
basins we are putting the
two together. Last week
we had a meeting with
IBB University Lapai
and the vice chancellor
was also in attendance.
We are starting first with
the geology of the area
because we don’t have
a lot of information on
it prior to now. We have
bought some data from
the Nigerian Geographical
Survey Agency that is
aeromagnetic and gravity.
We have analyzed the
aeromagnetic and gravity
data and now know where
the basins are deep.
IBB University
and others that have
knowledge of the area
have been chosen to
lead. We are still holding
technical meetings with
them (IBBUL) for us to
present to them what we
have done geologically
and they will also present
to us all the work that they
have done.
Researchers from the
IBB University, Lapai
recently announced that
they had discovered large
quantity of crude deposit
• Dr Mazadu D Bako,
GGM FES NNPC
at the Bida Basin. What is
NNPC doing about this?
I will not sit down
here and tell you I have
discovered any oil. I am
not doing it in theory.
We are practical people.
When we met them (the
researchers), the professor
(said he) was quoted out
of context. They have not
found any oil, neither
have they designed any
new drilling method
because if they have found
oil and have a new drilling
method then they don’t
need NNPC. When you
find oil it is not hidden,
there is celebration, the
community will celebrate.
Was the meeting with
the IBB University sequel
to the announcement or
just coincidence?
Not at all, it is
something that we have
been doing with them.
It is something we have
planned it is just that the
meeting coincided with
the announcement.
Where is NNPC’s source
of funding?
We are funded from
the Federation Account.
The most important thing
is, do we have enough
resources to prosecute our
plans? Yes we do.
17
INTERVIEW>>
We’ll commence oil drilling in North August – Bako
Group General Manager of Frontier Exploration Services (FES) Division of the Nigeria National Petroleum Corporation (NNPC), Dr. Mazadu D. Bako,
in this interview gives update on the renewed search for crude oil in the inland basins of the North and other inland sedimentary basins. Excerpts.
What are the other
challenges?
Since this government
came into power we have
not had any challenge.
What is holding us back
in the Chad Basin is
just the insurgency. Any
report about attacks in
the area dampens our
morale. Every bomb
explosion is a setback for
me psychologically and
otherwise.
We will need to carry out
security risk assessment
and we are currently in the
process of doing it.