Nigeria’s oil exploration technology driven

Nigeria's oil and gas exploration sector is undergoing a transformation fueled by advancements in technology. Ismail Muhammad, the Executive Director of Central Technical Services at NNPC Exploration and Production, explained in an interview with CNBC Africa that the use of technology has significantly reduced the risks associated with project sites. This shift has addressed the issue of financial and technical losses experienced in previous exploration endeavors. Muhammad emphasized the importance of collaboration and development in the sector to leverage the abundant opportunities available in Nigeria. He highlighted three key points driving the growth of the industry. Firstly, there is a focus on provision of power through gas utilization from the region. Additionally, the construction of a fertilizer plant is underway to boost national fertilizer production and enhance overall agricultural productivity. Lastly, efforts are being made to establish refineries that would provide distillate to support transportation infrastructure across the country. The sector is not just about drilling for oil; there is a vast value chain that presents numerous opportunities for local players. Ancillary services related to refineries, such as logistics and chemicals, create additional avenues for participation. Through the utilization of local content, Nigeria aims to foster symbiotic relationships that drive the nation towards achieving its energy potential. Muhammad further elaborated on the exploration activities, including seismic surveys, interpretations, and acquisitions, all of which rely heavily on local content. With a significant gas reserve of over 20 trillion standard cubic feet and an oil reserve of over 6 billion barrels, Nigeria stands as a key player in the global oil market. Future plans involve drilling over 60 wells from 2023 to 2024, indicating a substantial growth trajectory in the sector. The successful completion of the integrated gas handling facility in Oloquo, a project commissioned by President Muhammadu Buhari in 2020, showcases Nigeria's commitment to harnessing its energy resources efficiently. The facility now serves as a major supplier of LPG to the nation, aligning with the objectives set by NNPC Limited under the leadership of Madam Mele Kyari. When questioned about the readiness of local players to tap into the burgeoning opportunities in the oil and gas sector, Muhammad emphasized the importance of preparedness and adherence to processes. Engaging vendors and contractors through platforms like NIPACs and Nogic ensures the smooth execution of projects. The provision of pipes, OCTGs, drilling services, and chemicals highlights the diverse range of opportunities available for local participation. Regarding the exploration activities in regions like Anambra and the upcoming exploration in the Lake Chad Basin, Muhammad explained that the decision to explore a location is primarily driven by the presence of hydrocarbons. Extensive technological tools, including seismic surveys and interpretation, aid in identifying potential drilling sites. The use of technology minimizes risks and optimizes exploration efforts, ensuring cost-effective operations. In conclusion, Nigeria's oil and gas industry is on a trajectory of growth and development, supported by technological advancements and strategic collaborations. The emphasis on local content and participation reflects a commitment to maximizing the nation's energy potential and fostering a sustainable future for the sector.