Investors scared of risks in frontier basins – NAPE

Investors scared of risks in frontier basins – NAPE

CHIGOZIE AMADI

The President of the Nigerian Association of Petroleum Explorationists, Johnbosco Uche, says investors are not ready to take risks in Nigeria’s frontier basins as they are not sure of hydrocarbon reserves.

Frontier basins are geological areas where hydrocarbon exploration activities have not been conducted or where commercial oil and gas discoveries haven’t been made.

The frontier basins hold promise for increasing Nigeria’s oil production and they include the Anambra, Benue Trough (Lower, Middle, Upper), Chad (South-Eastern sector), Dahomey, Bida (Mid-Niger), Sokoto, and Deep/Ultra-deep offshore.

Speaking at a media briefing in Lagos recently, Uche stated that EnServe covers the front-end studies in the Frontier Basin, including the seismic acquisition and others.

He revealed that EnServe has agreed to work with NAPE to drive the agenda for the frontier basins.

“They agreed that they will collaborate with us in NAPE to drive the agenda for the frontier basin to see what can be done,” he said.

According to him, there is a need to acquire the right seismic data, which he said is not available. Seismic surveys are a primary tool for locating and characterising hydrocarbon reservoirs.

For the Anambra basin, Uche disclosed that there is only 2D seismic data, but the 3D must be acquired. To acquire the 3D seismic, the NAPE boss explained that there should be enough funding.

“For us to succeed, we need to acquire the right data, the right seismic data, which we don’t have today. If you go to the Anambra Basin, for example, I think it is only the 2D seismic that we have. So, we need to acquire 3D seismic.

“And to acquire those 3D seismic, you need the right attractive fiscals for investors, so that they will know that when they spend the money to acquire those seismic, then there will be something in there, either through tax regime or some incentives.

“So, if that is done, I do believe that indeed that calm that we’ve seen will actually change again. Because it’s more risky, that’s why I think people have not really gone in there that much,“ he stated.

The significance of the frontier basins is that they are new sources of oil and gas revenue for Nigeria, with the potential for natural gas reserves for domestic use and export.

The Nigerian Upstream Petroleum Regulatory Commission is responsible for overseeing frontier basin exploration through regulations, and the basins are seen as a way to ensure Nigeria’s long-term energy security and economic growth.

However, not much has been achieved in these basins over the years. Last year, the NUPRC announced that it would work with Schlumberger Global to develop the frontier oil basins in Nigeria.

Meanwhile, as NAPE marks its 50th anniversary in August, Uche noted that the occasion will provide a strategic platform to define the framework for rejuvenating the Niger Delta basin through the indigenous onshore and shallow offshore operators as well as frontier basin exploration for gas.

“We aim to generate ideas that will enable an increase in production, unlock new reserves, and ensure energy security for Nigeria and the African continent over the next 50 years,” he added.

The NAPE boss emphasised the need for intentional gas exploration, especially in the deeper reservoirs and frontier basins.

He stated that about 50 per cent of the gas reserves is non-associated.

“And we in NAPE believe that this must grow substantially to meet our national aspiration of discovering the remaining 300 trillion cubic feet of gas.

“Expanding into frontier basins and exploring the older rock sequences in the Niger Delta will be critical in unlocking this potential and achieving sustainable energy security with a cleaner fuel alternative, which is gas,” he added.