COVID-19: How the pandemic is impacting Nigeria's oil exploration prospects

The first half of the year has been an unprecedented period for the global oil industry, with the COVID-19 pandemic having a significant impact on oil dynamics worldwide. The OPEC+ supply cuts have played a crucial role in stabilizing oil prices amid the ongoing crisis. To shed light on how the pandemic has affected Nigeria's oil exploration prospects, Alex Nachi Tarka, the President of the Nigerian Association of Petroleum Explorationists, joined CNBC Africa for an insightful discussion. Based in Lagos, Tarka provided valuable insights into the challenges and opportunities facing Nigeria's oil and gas sector amidst the current global crisis. The COVID-19 pandemic has undoubtedly taken a toll on oil exploration activities in Nigeria. Many projects have had to be postponed or rescheduled due to the constraints imposed by the pandemic. The cost of funds and investment opportunities has been significantly impacted, making it challenging for companies to proceed with exploration plans. Despite these challenges, Tarka highlighted the resilience of the Nigerian National Petroleum Corporation (NNPC), which continues its exploration activities despite the obstacles. This commitment to exploration reflects the importance of the oil and gas industry to Nigeria's economy and the nation's energy security. Tarka emphasized the significance of maintaining exploration activities to secure Nigeria's future oil reserves and strengthen its position in the global oil market. Nigeria's exploration prospects have shown promising signs, with advanced technologies and integrated data analysis revealing positive outcomes. The recent discovery of 37 billion barrels of oil reserves, with plans to reach 40 billion barrels, underscores Nigeria's potential as a key player in the global oil industry. The ongoing exploration efforts in Nigeria's eight local governments are a testament to the nation's commitment to expanding its oil reserves and leveraging its natural resources for sustainable development. Despite the challenges posed by the COVID-19 pandemic and the fluctuating oil prices, Nigeria remains steadfast in its exploration endeavors. Tarka emphasized the importance of building oil reserves to secure Nigeria's future energy needs and maintain its influence in global oil markets. The current environment, characterized by supply cuts and volatile oil prices, necessitates a strategic focus on exploration to strengthen Nigeria's long-term energy security. As Tarka highlighted, suspending exploration campaigns would be counterproductive for Nigeria, given the critical role of oil reserves in ensuring the nation's economic stability and competitiveness in the global oil market. In the face of uncertainty and market fluctuations, maintaining a sustained commitment to exploration is vital for Nigeria's energy future and economic resilience.