NNPC Ready to Return to Borno as Zulum Sets Two Conditions for Oil Exploration

NNPC Limited has said it is ready to revive oil exploration in Borno State, more than two years after operations were suspended. The company made the position known after a meeting with Governor Babagana Zulum at Government House in Maiduguri on Wednesday.

The NNPC delegation was led by its Non-Executive Chairman, Ahmadu Musa Kida. Group Chief Executive Officer Bashir Olujari said the company intends to work with the state government and local communities in the affected areas.

Seven LGAs in the exploration basin

The proposed operations cover an oil basin spread across seven local government areas in Borno State. The talks also covered a planned solar power project meant to support development in the region.

Other members of the delegation were Udy Ntia, Executive Vice President, Upstream, and Olalekon Ogunleye, Executive Vice President, Gas, Power and New Energy.

Zulum pushed back on any suggestion that insecurity was the reason exploration stopped. He told the NNPC team that soldiers, police officers and members of the Civilian Joint Task Force had already been deployed to guard the sites and equipment.

Two issues before work restarts

The governor used the meeting to raise two outstanding issues he wants resolved before full operations begin again.

He called on NNPC to honour an earlier commitment to supply gas for the project. According to him, the withdrawal of that gas supply was a key factor in the suspension of activities.

Zulum also flagged the state of equipment that has sat unused at the exploration sites for more than two years. He argued that upgrading those facilities would be necessary before any return to work.

On the solar energy component, the governor expressed support for expanding the number of plants. He said more installations would help shield residents from the impact of rising fuel costs.

NNPC did not give a specific date for when exploration would resume.

What it means for the state

Borno has no crude oil output on the books, so any resumption would be a new addition to the country's upstream map rather than a restoration of lost volumes. For now, the ball is in NNPC's court on gas supply and equipment rehabilitation, two costs the company will have to carry before drilling can restart. For residents, the solar plan is the nearer-term benefit, given the pressure of fuel costs on households and small businesses in the state.