Should Northern Nigeria Explore Oil and Gas? By Dr. Ahmed Adamu
The Nigerian government plans to spend N39.4 Billion to undertake geological and geophysical surveys in an effort to explore the prospect of oil and gas deposits in the Inland-Basin of Lake Chad and upper Benue Trough. This is provided in the proposed 2016 budget, presently awaiting National Assembly’s approval, and have so far provoked political reactions from some politicians. However, none have professionally react to it. This is a ticklish issue as it involves investing huge amount of scarce resource on uncertain venture, and at a time when the oil and gas prices are below economic benchmarks. It will cost up to $15 million to drill a single exploration well, and you will need a number of them depending on the reserve spread. This investment will have to be recouped after development and production. What determines when to explore and recovery of investment cost is largely the oil price. Recently, Genel Energy PLC requested for extension of its exploration