Kolmani Oil Project: A Reality or a Myth?

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Kolmani Oil Project: A Reality or a Myth?
Kolmani Oil Project: A Reality or a Myth?

By Abba Hamisu Sani

 

Africa-Press – Nigeria. The Kolmani oil drilling project was inaugurated by Nigeria’s immediate past president, Muhammadu Buhari, toward the end of his tenure.

At the time, Buhari noted that NNPC Limited and its partners had attracted an investment of $3 billion into the project. The oil field was a significant milestone, marking the discovery of oil outside the established Niger Delta basins.

He further stated that the successful discovery of the Kolmani oil and gas field had broken the long-standing jinx. He explained that this outcome followed his administration’s directive to the NNPC to re-strategize and expand exploration into the Anambra, Dahomey, Benue, and Bida basins.

The project was expected to commence with a daily production of about 50,000 barrels of crude oil.

The NNPC noted that Nigeria must accelerate production to 3 million barrels per day by 2032, and the Kolmani project was seen as a strategic contributor to this goal.

The project also includes a petrochemical refining complex with a 120,000-barrel-per-day refinery, a gas processing plant with a 500 million cubic feet per day capacity, and a 300-megawatt power plant.

History of the Kolmani Oil Project

According to the Nigerian National Petroleum Company Limited (NNPC), commercial prospecting in the Kolmani oil field began in the 1970s with Shell. However, it was abandoned after no significant results were achieved.

The effort was revived through exploratory wells Kolmani River 2, 3, and 4, targeting deeper reserves. The first phase, launched in 2019, led to the discovery of 1 billion barrels of oil and 500 billion cubic feet of gas.

NNPC stated that in 2019, it applied cutting-edge technologies and advanced area surveys to de-risk exploration in frontier basins. As a result, frontier exploration in Kolmani began yielding positive results.

At the inauguration of the Kolmani project in 2022, the then Group Managing Director of the New Nigeria Development Company, Shehu Usman, said the discovery of hydrocarbons in commercial quantities followed a 2016 directive by President Buhari to commence exploration in the Benue Basin.

He noted that the discovery dispelled doubts about the presence of oil in the North and ended a long era of stagnation in Nigerian oil field expansion.

He added that only the NNPC showed sustained interest in frontier basins, and its determination led to this historic achievement. He stressed that the project would create value for local communities through strategic partnerships and crude and gas offtake.

He further urged the formation of more such partnerships to open up the North for oil and gas exploration.

From Fanfare to Frustration

The initial excitement following the Kolmani project’s inauguration has since turned to frustration.

Gombe State Governor Inuwa Yahaya, who also serves as Chairman of the Northern Governors Forum, expressed disappointment over the lack of progress on the project.

Governor Inuwa voiced his concerns during a visit to the Presidential Villa.

“It is unfortunate that there has been no development. Nearly two years after the foundation laying, the integrated development—which includes a 250,000-barrel-per-day refinery, a 350-megawatt power plant, and a 2,000-ton-per-day fertilizer plant—has not taken off.

“Issues between NNPC and its partners or developers have strangled operations. I believe presidential intervention is necessary. Since petroleum and gas fall under the exclusive legislative list, there’s not much we can do at the state level.

“NNPC is the only company mandated to handle petroleum and gas operations in Nigeria. Therefore, I sought the President’s intervention to help revive activities at the site as soon as possible,” Yahaya stated.

Bauchi State Governor, Senator Bala Mohammed, also hinted that the Kolmani Integrated Development Project—a multi-billion-naira oil exploration venture straddling Gombe and Bauchi communities—had been effectively abandoned.

NNPC Announces Plan to Resume Operations

The Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, recently announced plans to resume operations at the Kolmani oil field in northeastern Nigeria. He reaffirmed that the oil search in the North would continue.

In an interview with journalists, Ojulari urged local residents to remain calm and assured them that drilling activities would soon resume.

“We will continue drilling in Kolmani and other sites. Beyond oil exploration, we are also committed to completing the Ajaokuta-Kano gas pipeline project,” he stated.

He added that these projects would revive previously shuttered industries and create new ones.

“This development will bring economic benefits to the region and uplift everyone through shared prosperity. That is why we must return to the site and keep the work going,” Ojulari said.

He also addressed doubts about his connection to the region.

“I was surprised when people claimed I was not from the North. I am a child of the North. I come from Ilorin and was raised in Kaduna State. I only started learning Yoruba at age 15.

“After Kaduna, I studied in Zaria. I am a northerner. I need the North’s support to succeed in this role and bring development to both the region and the entire country.

“I also ask for everyone’s prayers. This job cannot be done by one person alone. We need to work together to ensure Nigeria’s progress.”

Kolmani Project Needs Scrutiny for Economic Viability

Professor Wunmi Iledare, a renowned petroleum economist, emphasized that the Kolmani oil exploration—originally celebrated under Mele Kyari’s leadership—must now be assessed based on current economic realities.

He advised that as NNPC’s new CEO, Ojulari must strictly adhere to the provisions of the Petroleum Industry Act (PIA) and focus on the commercial principles underpinning the corporation’s mandate.

In an interview with Daily Trust, Professor Iledare stated:

“Economic choices must be unsentimental. If continued exploration and production in the North fails to deliver measurable value to NNPC, then the investments must be reconsidered.

“Ojulari must fully leverage the depth of experience on the NNPC board, listen carefully, and lead decisively. He knows he has my full support in his vision and idealism—for whatever it’s worth. But he also knows that PWI will always speak with candor.

“He is a professional, not a politician—and that distinction must be preserved.”

With Ojulari’s announced plans to resume operations at the Kolmani oil field—alongside public concerns expressed by Governors Inuwa Yahaya of Gombe and Bala Mohammed of Bauchi—there is renewed hope that the project may yet become a reality. If successful, the Kolmani project could unlock new economic opportunities that would boost the economy of Northern Nigeria and the nation as a whole.

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