NNPC’s $3 Billion Northern Oil Exploration: A Costly Gamble with Little Returns

New Kolmani Oil Field Plans Mask Troubling Financial Reality

The announcement by Bayo Ojulari, NNPC’s newly appointed Group Chief Executive Officer, about restarting crude oil exploration at the Kolmani oil field sparked optimism. Located on the Bauchi-Gombe border, this northern region has been heralded as Nigeria’s next major oil frontier. However, beneath the surface of this promising development lies a sobering truth: over $3 billion has already been invested in northern basin explorations with minimal results.

Questionable Returns on Massive Investments

Despite significant expenditures across multiple exploration sites—including Kolmani, Chad, and the Upper Benue basins—tangible outcomes remain elusive. The lack of substantial discoveries raises concerns about the financial prudence of continuing these costly ventures, especially as Nigeria faces mounting fiscal pressures.

As the NNPC pushes forward with new exploration plans, industry experts and stakeholders are questioning whether this strategy represents sound resource allocation or a misdirected battle in Nigeria’s energy sector.

By Kelvin Emman

Full credit to the original publisher: BusinessDay