Nigeria to earn N3trn from new oil field

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– A new oil reserve has been discovered which might generate much needed revenue for Nigeria

– The oil reserve was discovered last October by ExxonMobil Corporation

– Experts say the oil field will be a much needed boon to Nigeria’s ailing economy

Owowo oil field map

Owowo oil field map

Nigeria’s ailing economy might receive a much needed boon as a new oil reserve which after being estimated is said to be able to generate upwards of N3 trillion for the country.

The ExxonMobil Corporation discovered the oil reserve in last October. With about one billion barrels of oil in the Owowo field, offshore Nigeria, the reserve is capable of solving some of Nigeria’s financial troubles.

According to Leadership, barely a week after ExxonMobil sold its downstream subsidiary, it announced the discovery of the oil field.

The Owowo oil field is located in southern Bayelsa state and energy experts say it will boost Nigeria’s efforts in increasing her crude oil reserves from the current 36 billion barrels to 40 billion barrels.

The target was initially set for 2010 but could not be achieved as a result of lack of investment in exploratory activities.

An official of the company said:

‘‘For such a huge project – its Erha North Phase II – to be completed despite the harsh operating environment, the Owowo oil field exploration could be a monumental success with the right policies in place,” the official said.

Another oil expert said: ‘‘The Owowo oil field has the potential of providing new employment opportunities for Nigerians once production starts. The implication of this is enhanced living standards for some households and revenue to government in form of taxes and royalties, but this can only be accomplished in a business-friendly environment.”

President of ExxonMobil development company, Neil W. Duffin said: “Executing successful projects such as Erha North Phase 2 ahead of schedule and under budget results from ExxonMobil’s disciplined project management approach and expertise.

“We are able to create additional shareholder value by optimising existing infrastructure, which reduces capital spending requirements and improves capital efficiency.”

He confirmed that more than N50 billion had been invested in Nigeria for Erha North Phase 2 and since completion, the project has delivered additional 165 million barrels per day of crude to Nigeria with a peak production of 65,000 barrels per day.

Meanwhile, the federal government has finalised plans of the construction of a 1,000 kilometer crude oil pipelines from Niger Republic to Kaduna Refinery.

This move was decided following the continued difficulty of transporting oil from the Niger Delta region to the Kaduna refinery due to the activities of militants and oil saboteurs.