Nigeria's exploration up north continues with Nasarawa oil well

Nigeria, known for its rich oil and gas resources, is expanding its exploration efforts up north in Nasarawa State. The Nigerian National Petroleum Company recently announced that the official drilling of the first oil well in Nasarawa State in the country's North Central region will commence in March. This move comes amidst the Nigerian Upstream Petroleum Regulatory Commission launching the 2022/23 deep offshore mini-bid round, signaling a significant development in the country's energy sector. To delve deeper into these developments, Oyeyemi Oke, a Partner at AO2 Law, provided insights on the implications of these ventures. Oke highlighted the importance of building reserves to strengthen the nation's oil industry, regardless of the geographical location of the discoveries. He emphasized the need for Nigeria to align its energy plans with global transitions towards renewable sources, underscoring the importance of diversification beyond oil. Reflecting on past successes like the Kolmani River-2 Well project, where the NNPC and Chevron secured funding for development, Oke emphasized the critical role of financial backing in driving these projects forward. However, amidst the optimism surrounding the Nasarawa exploration, concerns about security loom large. The history of militancy in the Niger Delta serves as a cautionary tale, prompting calls for proactive security measures in the North Central region. Oke stressed the vital need to address security challenges to prevent the exploitation of resources by nefarious actors, pointing to the risks posed by banditry and terrorism in the area. Turning to the ongoing deep offshore mini-bid round, Oke viewed the initiative as a positive step towards boosting government revenue through signature bonuses, royalties, and taxes. He urged a balance between maximizing resource exploitation and aligning with global energy transitions to ensure sustainability. As Nigeria forges ahead with its exploration ventures, finding this equilibrium will be crucial in navigating the evolving landscape of the oil and gas industry.