FG Approves $10 billion For Oil Exploration Project in Niger State
Nigeria's Federal Government has on Friday 10 January approved an estimated $10 billion oil exploration project in Bida Basin, Niger state, to be executed by an undisclosed Chinese firm, the state’s commissioner of mining and mineral resources, Engr Abubakar Jibreel said.
The commissioner,noted that while five foreign firms have indicated interest to invest in the oil exploration in the basin, a Chinese firm has agreed to invest over $10 billion in the exploration and exploitation of oil and gas in Bida Basin, commenting.
Jibreel said: "The Department of Petroleum Resources (DPR) has started the study of the presentation and a five-man Chinese delegation has met with the experts from the DPR and the experts are scheduled to visit the state before the end of this month."
"We want to tell those who doubt that there is oil in Niger State to stop and join in the effort to make it flow. In fact, it is from Niger State that oil flowed to Niger Delta where we are exploiting it today. We should not also forget that if Chad and Sudan can have oil in large quantity, it is more possible to have oil in the northern part of Nigeria."
The unnamed Chinese firm has indicated its interest to also construct a refinery in Baro, Niger State.
The good news is that laboratory studies for hydrocarbon deposits in the Bida Basin revealed that there was about a 70 percent gas and 30 percent oil composition.
The bad news is, as always, the current Nigerian environment, rife with corruption.
Will China be able to surmount the issues of production and corruption that have tormented foreign oil companies up to now?
Can China surmount the problems that have dogged Western oil firms operating in Nigeria?
Given Beijing's deep pockets, if such difficulties can be bought off, then China's options are the best of any energy firms entering the chaotic Nigerian oil market.
Photo credit: (Pius Utomi Ekpei/AFP/Getty Images)
The commissioner,noted that while five foreign firms have indicated interest to invest in the oil exploration in the basin, a Chinese firm has agreed to invest over $10 billion in the exploration and exploitation of oil and gas in Bida Basin, commenting.
Jibreel said: "The Department of Petroleum Resources (DPR) has started the study of the presentation and a five-man Chinese delegation has met with the experts from the DPR and the experts are scheduled to visit the state before the end of this month."
"We want to tell those who doubt that there is oil in Niger State to stop and join in the effort to make it flow. In fact, it is from Niger State that oil flowed to Niger Delta where we are exploiting it today. We should not also forget that if Chad and Sudan can have oil in large quantity, it is more possible to have oil in the northern part of Nigeria."
The unnamed Chinese firm has indicated its interest to also construct a refinery in Baro, Niger State.
The good news is that laboratory studies for hydrocarbon deposits in the Bida Basin revealed that there was about a 70 percent gas and 30 percent oil composition.
The bad news is, as always, the current Nigerian environment, rife with corruption.
Will China be able to surmount the issues of production and corruption that have tormented foreign oil companies up to now?
Can China surmount the problems that have dogged Western oil firms operating in Nigeria?
Given Beijing's deep pockets, if such difficulties can be bought off, then China's options are the best of any energy firms entering the chaotic Nigerian oil market.
Photo credit: (Pius Utomi Ekpei/AFP/Getty Images)
FG Approves $10 billion For Oil Exploration Project in Niger State
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Reviewed by Msl
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