I’m a Northerner & we will continue oil search in the North—Bayo Ojulari, NNPC GMD
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, has announced plans to resume operations at the Kolmani Oil field, in north-eastern Nigeria, vowing that oil search in the North will continue.
On Tuesday, November 22, 2022, then President Muhammadu Buhari inaugurated the Kolmani oil drilling project, marking the first-ever crude oil exploration in northern Nigeria.
Speaking in an interview with the BBC on Monday, Ojulari urged residents of the region to remain calm and assured them that drilling activities would resume.
According to him, “We will continue the drilling in Kolmani and other sites. Beyond oil exploration, we are also committed to completing the gas pipeline project from Ajaokuta to Kano.”
He added that these projects would revive previously closed industries and create new ones.
“This development will bring economic benefits to the region, uplifting everyone through shared prosperity. That’s why we must return to the site and keep the work going,” Ojulari stated.
‘I am a Northerner’
Ojulari, who said he hailed from northern Nigeria, revealed that he was surprised by some of the reactions to his appointment and called on citizens across the country to support him and pray for his success in advancing both the region and the nation.
He said, “I was surprised when people said I was not from the North. I am a child of the North, and I come from Ilorin. I was brought up in Kaduna State. I started learning Yoruba when I was 15 years old.
“When I left Kaduna, I went to Zaria to study, so I am a northerner. I need the support of the North to do this work well and bring development to the North and the whole of Nigeria. I need everyone’s prayer as this work is not what one person can do. We need to work together to ensure Nigeria’s progress.
On the lingering rift between NNPCL and Dangote Group, the new CEO said efforts are already underway to mend fences.
“Dangote has made significant contributions, which deserve commendation,” he said. “We’ve held talks to resolve the conflict. Going forward, we’ll collaborate to ensure consistent fuel supply for Nigerians.”
He stressed that any future disagreement would be resolved through dialogue, adding, “You won’t hear of any more clashes between NNPCL and Dangote Refinery. We’ll work together for Nigeria’s benefit.”
Ojulari also addressed the recent drop in global crude oil prices, which have reduced Nigeria’s expected revenue.
“This decline affects Nigeria’s budget since a major part of it relies on projected oil revenue,” he said.
However, he noted that NNPCL is working to cut operational costs to make the most of what they earn from oil and gas sales.
Responding to public complaints that local fuel prices don’t drop even when global prices fall, Ojulari explained that dealers need time to adjust.
“If they bought fuel at a higher price before the drop, they’ll need to sell at that old rate. But with new purchases at lower prices, we expect local prices to eventually reflect the change,” he said.
History of the Kolmani oil project
According to the NNPCL, commercial prospecting at the Kolmani Oilfield started in the 1970s with Shell, but was abandoned as no significant outcome was achieved.
It was, however, revived through Kolmani River 2, 3, and 4 to explore deeper targets, flagging off the first phase in 2019 that led to the discovery of 1 billion barrels of oil and 500 billion cubic feet of gas.
NNPC stated that in 2019, it applied cutting-edge technologies and area surveys to de-risk exploration in frontier basins, meaning that frontier exploration is yielding positive results in Kolmani.
Speaking during the inauguration of the project in 2022, then GMD of New Nigeria Development Company, Alhaji Shehu Usman, said the discovery of hydrocarbons in commercial quantities in the area was aided by the order given by President Buhari in 2016 to commence exploration in Benue.
He stated that the discovery ended doubts that there could be oil in the North, and also ended stagnation and growth of Nigerian oil wells.
He added that only NNPC assured interest in the frontier basins, and its determination to drive the desires has led to this historic success, stating that the impact will bring value creation for host communities starting with strategic partnerships and also crude and gas uptake from the field.
He stated that more of such partnerships should be forged to open up the North for oil and gas exploration.
It was expected to start with a daily production of about 50,000 barrels of crude oil.
The NNPC noted that Nigeria must accelerate to 3 million bpd by 2032 through the project.
Also accompanying it is a petrochemical refining site with an oil refinery of 120,000 bpd, a gas processing site of 500 million cubic feet per day, and also a 300 MW power plant.
Former President Buhari, during the official inauguration, said the project is executed through the Oil Prospecting Lease (OPL) 810 and 809 to drill oil in Northern Nigeria.
Buhari noted that NNPC Ltd. and its partners attracted an investment of $3 billion to the project as the oil field is significant to find oil outside the established Niger Delta basins.
Buhari added that the successful discovery of the Kolmani oil and gas field has finally broken the jinx, stating that the discovery emanated from the government’s charge to NNPC to restrategise and expand the oil and gas exploration footprint to Anambra, Dahomey, Benue and Bida basins.
Buhari also noted that similar exploration activities are ongoing in other basins.
“I look forward to the successful delivery of Kolmani Integrated Development Project, which would be a pillar in Nigeria’s economy,” he added.
The fanfare that followed the inauguration of the project by President Buhari has turned to frustration, leading to prominent personalities expressing disappointment in the state of the project.
Leading the voices of disappointment was the Governor of Gombe State, Inuwa Yahaya, who lamented that lack of progress on the project is frustrating.
Gov. Inuwa, during a visit to the Villa said: “It is really a very unfortunate development. As you said, close to two years now after the foundation laying for an integrated in situ development comprising of 250,000 capacity refinery and 350 megawatts of power plant and 2000 tons capacity fertiliser plant which was supposed to take off since then, but because I think there are some issues with the NNPC and also the partners that are engaged or developers, those issues really have strangled operation to take off.
“And in fact, it is part of the discussion I had with Mr President believing that once he steps in, maybe we will see activities back for the fact that petroleum and gas are under the exclusive list, and there is not much we can do.
“NNPC is the only company that is to handle anything gas or petroleum of the Federal Republic of Nigeria, as such presidential intervention which I just came and sought for will really make things turn back and activities will resume on the site as soon as possible.”
The Governor of Bauchi State, Bala Mohammed also insinuated that the Kolmani Integrated Development Project in the North-east, a multi-billion-naira oil exploration project located between Gombe and Bauchi communities, had been abandoned.
Project should be scrutinised for economic viability – Expert
Speaking with Daily Trust, a renowned professor of Petroleum Economics, Prof. Wunmi Iledare, said the oil exploration efforts in Kolmani, originally celebrated under Mele Kyari’s administration, should be assessed with a clear-eyed view of their current and future values.
He said as the head of NNPCL, Ojulari must adhere strictly to the provisions of the Petroleum Industry Act (PIA) and remain grounded in the commercial principles that define its mandate and in moments of ambiguity, he should return to the original intent of the PIA’s framers—they remain his strongest allies in navigating complex decisions.
“Economic choices must be unsentimental. If continued exploration and production (E&P) investments in the North fail to deliver measurable value to NNPCL, they should be reconsidered. BBO must fully leverage the depth of experience on its Board—listen, learn, and lead decisively. He knows he has my full support in his vision and idealism for whatever it is worth. But he also knows PWI will always speak with candour. He is a professional, not a politician—and that distinction must be preserved.”
