OGUN State is set to become one of the oil-producing states in Nigeria as it recently received a delegation from the Federal Government in Abeokuta, the state capital.
The Nigerian National Petroleum Corporation Limited (NNPCL) is gearing up to commence oil and gas exploration activities in the Gateway State.
During a recent visit, the state governor, Dapo Abiodun, welcomed the Federal Government delegation, which includes the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri; the Managing Director of Shell Petroleum Development Company Ltd, Osagie Okubor; Chief Executive of Nigeria Upstream Petroleum Regulatory Commission, Engr. Gbenga Komolafe; and NNPC Group Chief Executive Officer, Mele Kyari.
During discussions at the governor’s office in Abeokuta, Lokpobiri highlighted that Ogun State has historically been associated with the Dahomey Basin, known for its substantial hydrocarbon reserves.
He emphasized the government’s commitment to recommencing exploration activities in various basins, with Ogun State being a priority due to its significant potential for discoveries.
Lokpobiri stressed the importance of the oil and gas sector in driving Nigeria’s economic growth and expressed the team’s dedication to promoting exploration efforts. The visit aimed to underscore the Federal Government’s seriousness and dedication to enhancing revenue generation through the oil and gas industry.
Governor Abiodun pointed out that Ogun State holds acreages within the OPLs 302, 303, 306, and 307, offering unique opportunities to qualify as a Frontier Exploration State under the provisions of the Petroleum Industry Act (PIA) section 9.
He noted that past studies and historical data support investments in frontier exploration, not only for oil and gas potential but also for future bitumen exploration and exploitation in Nigeria.
Abiodun highlighted the favorable conditions in Ogun State for investments, including accessibility, low operational costs, supportive local communities, and active government involvement.
He emphasized that the state’s potential contributes to actualizing the objectives of PIA section 9, ensuring increased petroleum production and supply for domestic refineries.
The governor also pointed out the potential for bitumen extraction in the region, which would reduce import reliance and lead to savings in foreign exchange expenditure.
Ogun State’s initiatives in oil and gas exploration are expected to bolster the country’s energy sector and support economic growth while reducing import dependency on resources like bitumen.
