NAN-HE-21
Investment
By Yunus Yusuf
Lagos, Oct. 20, 2016 (NAN) The Nigerian Association of Petroleum Explorationists (NAPE) on Thursday urged the Federal Government to invest more in frontier basins exploration to stimulate investment opportunities in Nigeria.
NAPE National President, Mr Nosa Omorodion, made the call at a briefing for the associations forthcoming annual conference slated for Nov. 14 to Nov. 17.
Omorodion said that the association’s 2016 conference was geared towards exploring ways that government can attracts investment into the frontier basins of Nigeria.
The frontier basin is a basin where the exploration activities have not been carried out or a basin with short-term exploration activities and a significant volume categorized as undiscovered.
He urged government to explore the hydrocarbon potentials of the country’s green frontier basins in order to increase her depleting reserves.
According to him, there are needs for drilling deeper into the basin to unlock the hidden hydrocarbon.
“There is more gas in the frontier than oil and this period of oil crude price is the best time to do more exploration in the basins.
”In the next 20 to 25 years, Nigeria will run out of oil if we don’t replenish our reserves.
“Our oil replenishing rate does not match with the depleting ratio. This is the right time to invest more in exploration activities,’’ he said.
Omorodion urged government to provide incentives to investors who are willing to invest in oil and gas exploration in Nigeria’s frontier basins.
“Low oil prices had led to slowdown in projects as well as the hindering of exploration activities with many companies rather re-actively focusing on short-term production.
“Understandably, it was a quest for survival as they got banks and lenders to deal with. For years we have decried the decline in exploration activities and have shouted loud on the need to focus more attention on it,’’ he said.
He said that the negative impact on Nigeria’s oil receipts from the activities of the sector calls for a sustainable strategy to mitigate the situation.
He commended the Nigerian National Petroleum Corporation for renewing its exploration effort across the country’s basins in collaboration with the Frontier Exploration Services.
Omorodion added that one of the key lead sessions of the conference would be discussing commercial exploration efforts within the Benue trough and frontier section of the Niger Delta.
“ The workshop is supported by NNPC. Much has been written and said on funding but let’s just also add that it is crucial for government to assure E &P companies that they will be more upfront in honoring JV cash-call obligations.
“Times like these calls for creativity and out of the box thinking. National interest should take precedence over emotive and non-commercially economic interest that will be of no benefit to the Nigerian people.
“ It is time to consider partial divestment and let’s do what is best for the nation and its people. There is no reason why the Marginal Field Act should not be modified and incentivized to enable exploration activities and not just production,’’ he added.
The News Agency of Nigeria (NAN) reports that NAPE 2016 conference is tagged “The Nigerian Oil and Gas Industry, Tackling Our Realities’’. (NAN)
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Edited by Ismail Abdulaziz