The Nigerian National Petroleum Company (NNPC) Limited is poised to commence oil and gas exploration activities in Ogun State, a move that is expected to make the state an oil-producing one shortly.
Key stakeholders in the oil and gas industry, including the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri; the Managing Director of Shell Petroleum Development Company Ltd, Osagie Okubor; the Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission, Gbenga Komolafe; and the Group Chief Executive Officer of NNPC Ltd, Mele Kyari, recently visited Ogun State Governor Dapo Abiodun and his deputy, Noimot Salako-Oyedele, to discuss the prospect.
During the meeting, Lokpobiri stated that Ogun State has always been part of the Dahomey Basin, which has the potential for significant hydrocarbon deposits. He emphasized that the federal government is committed to resuming exploration activities in various basins across the country, with Ogun State being a priority.
Kyari, the NNPC Group Chief Executive Officer, expressed optimism that oil would be found in commercial quantities in Ogun State, given its location in the Dahomey Basin corridor. He assured that the company would return to the state soon to commence exploration activities.
Governor Abiodun highlighted that Ogun State is part of the Oil Prospecting Leases (OPLs) 302, 303, 306, and 307, which present unique opportunities for the state to qualify as a Frontier Exploration State as defined in the Petroleum Industry Act (PIA) section 9. He noted that numerous studies have shown the potential of these basins, indicating the state’s prospects for commercial success and economic benefits from exploration and production within a short timeframe.
Abiodun emphasized that Ogun State offers ease of access, low entry and operating costs, a safe and welcoming community, and active state government support and participation, making it an ideal location for oil exploration. He added that the area also presents an opportunity for bitumen extraction, which could reduce import dependency and foreign exchange expenditure on a single line item.
The commencement of oil exploration in Ogun State is expected to contribute to the country’s additional petroleum production and supply potential refineries in the area. This development marks a significant milestone for the state as it joins the league of oil-producing states in Nigeria.