Concerns for Nigeria as more African countries go into oil exploration

An indigenous oil firm, Oranto Petroleum, has entered into a major oil investment drive, worth $500 million in South Sudan, which is to lead to developing a big oil well, known as Block B3.

But some have expressed concern over the rate at which many African countries are going into oil explorations since 2015.

It would be recalled that Oranto Petroleum with other international firms are already exploiting more than 30 oil blocks in a number of African countries, mainly from the West African sub-region, including Benin, Côte d’Ivoire, Equatorial Guinea, Ghana, Liberia, São and Senegal.

However, the South Sudanese deal is said to have capacity of exploring old prospects of about 5,000 barrels of oil per day, within the dimension of 25,150 square kilometres.

According to Chief Arthur Eze, Founder and Chairman of Oranto Petroleum on Monday, both the Nigerian and South Sudan authorities have given his company the needed approval to go into the exploration business.

He told newsmen that the contract had already been signed in the South Sudan capital Juba.

“There have been the necessary aeromagnetic and seismic data that have been acquired for the B3 Oil Block as made possible by the cooperation of the South Sudan’s Minister of Petroleum, Ezekiel Lol Gatkuoth and we hope to assist this youngest African country join the league of oil producing nations soon, ” Eze said.

This has increased concerns by many observers on the possibility of South Sudan becoming a major rival in oil production in the African continent as Kenya is already going ahead into some major oil exploration business with a British oil firm.

An expert in the oil business, Mr. Timothy ALsborn said, “There is now the possibility of more African countries going into oil exploration with many consequences.

“Nigeria should not rule out the fact that by the time most of these countries put out their output into the market, the much expected revenue from the oil, as its main source of funding all its programmes would be challenged, hence the need for the country to diversify its mono economy”.

Also, Mr. Akin Adebowale, another commentator in the old sector, said the only saving grace Nigeria has in the fact that many more countries are eyeing the oil sector is that it would still take some years for the new entrants into the business to constitute major threat to Nigeria, adding that all things that should be done towards diversifying the country’s economy should be given priority attention.

But NNPC said there is no cause for alarm as Nigeria is still rated among the main oil and gas operators within the oil producing countries of the world.

 

 

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