(Ecofin Agency) - Borno State, a state in north-eastern Nigeria, has joined the league of oil-producing states in the country, with the discovery of crude oil after many months of exploration.
This was disclosed by the Permanent Secretary of the Ministry of Petroleum Resources, Jamila Shua’ra, during the agreement signing ceremony for joint venture, JV, cash call withdrawal and presentation of the petroleum sector score card in Abuja.
Shua’ra, however, did not disclose the exact area the oil was discovered in the state and the quantity. In the scorecard submitted to stakeholders, the ministry noted that the Department of Petroleum Resources (DPR) would carry out bid rounds for open blocks and finalize the initially terminated marginal fields bid round in 2017, so as to improve the entry of new players, encourage competition and generate revenue for the government.
According to the Vice President of Nigeria, Yemi Osinbajo (photo), the removal of petroleum subsidy had eliminated a huge financial burden from the Federal Government. He added that the Federal Government had initiated moves to increase the country’s domestic refining capacity for petroleum products by renovating the current refineries, licencing modular refineries and supporting the development of private-led refineries.
“Recently, the Federal Executive Council approved new measures and strategies aimed at eliminating the burden of joint venture cash calls arrears and easing future payments in the upstream sector. The measures will boost additional investments and raise daily production levels to about 2.8 million barrels per day, mbpd,” he told Vanguard news.