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Nigeria govt spends N14.5bn searching for oil in north, others

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The Nigerian National Petroleum Corporation (NNPC) has spent a total of N14.5 billion on frontier exploration services, which involves the search for hydrocarbons in inland basins, especially in the north.

This was revealed in the NNPC’s August presentation to the Federation Account Allocation Committee (FAAC), which was obtained on Tuesday.

According to the document, NNPC spent N1.96 billion in January 2021, while in February a total of N1.92 billion was spent.

The figure increased to N2.25 billion in March but no amount was released for exploration in April.

In May, NNPC resumed exploration financing costing the country N3.21 billion, while another N2.71 billion was spent in June.

READ ALSO: NNPC declares first net profit in 44 years, as Buhari praises management

In the month of July, another 2.44 billion was committed to the exploration service.

Expenditure on Frontier exploration services is expected to rise in the coming months as the Petroleum Industry Act goes into force.

According to PIA, the soon-to-be-announced NNPC Limited would set aside 30 percent of its profits for oil exploration in frontier basins.

Also, the FAAC document noted that NNPC has spent about N58.33 billion on refineries rehabilitation in the first seven months of the year. With a monthly average of N8.33 billion

While the Nigeria-Morocco gas pipeline has so far gulped N500 million.

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