The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Kacalla Baru, has urged members of the National Association Of Petroleum Explorationanist (NAPE) to champion a cost effective and novel technologies to enable the industry drill into deeper horizons.
He made the call while speaking at a dinner organised to honour him by NAPE held at the Transcorp Hilton, Abuja on Friday. While appreciating the association for honouring him, Dr. Baru promised to have a fruitful and rewarding partnership with NAPE with the intent of moving the industry forward.
Speaking on his expectations from the geologist, Dr. Baru urged all operators in the industry to collaborate in the areas of data sharing as well as use common available resources to reduce cost of operations
Explaining how the relationship can be of benefit to the industry, the GMD’s speech which was twittered in the Corporation’s official handle stated, “This will only be feasible if we invest in exploration to prove up more reserves and also increase production.”
He noted that for effective exploration to continue the Corporation is currently deliberated upon the option of clearing arrears debt incurred in the Joint Venture businesses with multinational companies through incremental production.
“Liquidation of our JV Cash Call arrears is a priority for us. Discussions have advanced towards ensuring that we clear our Cash Calls backlog, Dr. Baru said.
On how funds will be raised to operate he said, “Under this arrangement, the IJVs can raise funds and self-fund their operations.
“The current direction we are heading is to exit JV Cash Call funding and move to incorporate our JV assets (IJVs) like the NLNG model,” he added.
While charging NAPE to expand its operation in the country, he said, “I enjoin NAPE to champion the need to have cost effective and novel technologies to enable the industry drill into deeper horizons.
“I urge you to revisit our basin modelling methodologies to accurately enhance prediction of hydrocarbon generation and migration.
“It is a known fact that the Aje field has come on-stream and this will spur other exploration efforts in that basin,” he said.
Speaking on efforts being made by NNPC on oil exploration outside the Niger Delta region, he said, “Currently, we are also finalizing plans of moving towards the Benue Trough to recommence exploration work.”
“However, we are refining our strategy to ensure we utilize the geological approach that has enabled Chad to be a producer,” he added.“I am aware that a lot of seismic work and drilling had been done in our side of the basin using the Niger-Delta exploration approach.
“NNPC is progressing exploration efforts in the frontiers basins. We’re acquiring data in the Chad Basin to prove up our own side of the basin.
“The nation is on daily basis re-injecting between 2Bscfd and 2.5Bscfd out of the total daily average production of about 8Bscfd, he noted.
Speaking of the significant of the Dinner, NAPE President Nosa Omorodion, said, “Today, we are not only honouring a special guest of honour, we are honouring a man whom the cap truly fits.” He added that “On Nov 15 this year, we will confer on Dr. Baru the singular highest honour of our organization.”