Seismic data gathering in advance stage in Bida, Sokoto Basins - Dr Bako
Dr. Mazadu D. Bako is the Group General Manager of Frontier Exploration Services (FES) of the Nigerian National Petroleum Corporation (NNPC). In this interview, he gives update on the renewed search for hydrocarbon in the inland sedimentary basins. Excerp
Where are we so far since President Muhammadu Buhari directed NNPC to increase the tempo on search for hydrocarbon in the inland basins?
The Frontier Exploration Services (FES) of NNPC, which is the Corporate Services Unit, has the mandate to explore for hydrocarbon in the inland basins and that mandate has not changed. The only thing is that it has the attention of the management of NNPC, as well as the presidency. Hydrocarbon exploration has a long gestation period. We had the first phase of this exploration in the 70’s and 90’s when 23 wells were drilled in the Chad Basin and non-commercial gas was discovered in two wells.
After that exploration was suspended, the data generated was analysed thereafter and we charted a new way to re-enter the Chad Basin. We commenced in 2009, and since then we have acquired about 2000km2 of seismic 3D data. While we were doing that, we were also doing some geological studies in the Benue Trough and the Anambra Basin because there are some other preliminary work you have to do in order to understand the sedimentary thickness and its lateral extent.
We took all those and did a lot of work to zero in on areas that we think are prospective. That one culminated into the 3D seismic data acquisition in the Gongola Basin. The Gongola Basin is the most northerly part of the Benue Trough. We did some acquisition last year and we have been able to process the data, interpret and then also identify some prospective areas for drilling.
Since we are mandated to look at all the inland basins, we have now taken up the Bida and Sokoto basins. In effect, we have taken the Chad Basin, which is the most explored now, the Benue Trough and the Anambra and we have gone to Bida and Sokoto.
We have started some preliminary work at the Bida and Sokoto basins. We should be through with the field geological work, and later this month, the second phase, which is surface geochemistry, ground gravity and magnetics data gathering will commence in Bida and Sokoto. The essence of this is that we are trying to zero in on the prospective areas and see if they have the source rock where the hydrocarbon is generated because if you don’t have the source rock, then we are just wasting our time.
Apart from the Chad Basin, has there been any exploratory effort at the other basins?
Sure; in the Benue Trough, some three companies had worked there, that is SNEPCO, Total and Chevron. They were given some blocks offshore and those blocks were tied for them to take some blocks onshore in the Gongola Basin. They now acquired 2D seismic data and since it was under Production Sharing Contracts (PSC), each of them drilled a well to satisfy the minimum work commitment as per the PSC terms. When they did that they relinquished the concession and turned over the data to the DPR and others.
In one well, the one by SNEPCO, they made a discovery. They discovered 33 billion cubic feet of gas in the Kolmani River 1, which is marginal.
Let me take you back a bit to how we identified these basins. Generally, in the past, even in the colonial days, people did a lot of work. So, we basically have a reasonable idea of where the sedimentary areas are, which we term inland basins.
There are claims that so much has been expended in the search for oil. In fact one report claimed that about $3bn had been spent on oil search in the North. How true is it?
I don’t deal with figures because I am not an accountant, my own is basically to go and do the work, and if for any reason people are talking about amounts, that means they have more information than I do. But for the billions they are talking about, I don’t think it is a realistic estimate.
Are you saying it is not up to that or it could be more than that?
It is not realistic; we are talking about billions of dollars. Do you know what billion is? You have to get to hundreds of millions before you go to billion, and if you look at the average cost of a well and work it back, how does it amount to billions?
Drilling for oil was expected to commence at the Chad Basin before the suspension of operations due to Boko Haram attacks. What is the current state of the operation?
Of course you know we have been working there and you are aware that some staff of the University of Maiduguri, working on behalf of Integrated Data Services Ltd (IDSL), an NNPC upstream subsidiary, were abducted and in fact, some lost their lives.
Because of the security challenges you cannot tell anybody to go there; nobody is even willing to go; that is where we are now.
So, operations in the Chad Basin are suspended. We are not happy, we want to go there but we have to wait for security clearance, and as you know, in the previous one we had security clearance and everything was fine.
We are waiting for security agencies to give us clearance and when they give us, obviously we will go into discussion on how we will re-enter the Chad Basin, but we are very ready now to enter the Chad Basin. If they just say everything is clear, tomorrow would be back there.
Is that the reason why you are shifting attention to Sokoto and Bida basins?
No, no. We have our strategic plan, we are going to Sokoto, Benue troughs, Bida, Anambra or Dahomey not because of security concerns. There is a five-year plan and we carry on with that plan.
So, we are not running away from Chad, instead we are standing by. The staff of the Chad Basin are still there waiting, including me.
Why are you not engaging the IOCs, maybe to form a joint venture (JV) in the search. Are they not willing to participate?
This is not a JV thing now. You cannot be talking about JV when we are running away from JV. Maybe partnership, but it is not something you wake up one day and enter into. These unexplore basins are high risk and what government did was to set up a FES to go there. When you make a find, people will show interest, they would want to partner with you to come and take the block.
Our own is not to produce now, but to find, but before then, it is difficult for you to tell somebody to go and search for oil in an uncertain zone; hence the name frontier.
So, whenever we make a find, you will see the interest. Even as at now people are asking questions because they want to come and invest, but unless you tell them you have seen hydrocarbon they cannot come.
NNPC and Nigerien authorities have lately been meeting and sharing information about exploration activities at the neighbouring basins, what is the type of information you are sharing?
Nigerian and Nigerien governments have been discussing chiefly on sharing of geological and geophysical data, and to know whether the Nigerien government wants to invest in their search for hydrocarbon and at the same time if they want to sell some of their crude to Nigeria.
We as FES have been in touch with our Nigerien counterpart through Savannah Petroleum, a quoted company in London, which is also involved in exploration in the Agadem concession in Niger. We went to their office in Niamey and London and saw all their data. This thing is also midwifed by the New Nigeria Development Company (NNDC) based in Kaduna. All three of us have been holding meetings and we have been exchanging data. We have not gone far in those discussions, though.
One version of the Petroleum Industry Governance Bill (PIGB) proposed to make the FES a stand-alone agency. Would that help to reduce the political pressure on FES?
I don’t think there is any political pressure on FES because they have given us free hand to do our work. Nobody is telling us to leave our work and do another thing. The only thing is that if they make it an agency, it takes responsibility for what it is doing, and that means you reduce bureaucracy of reporting to NNPC and the ministry. It makes things faster.
We have noticed the presence of heavy equipment in some states. What sort of support have you been getting from state governments where exploration activities are currently ongoing?
We are working around Gombe-Bauchi, area acquiring seismic data. Why the governors come in is because they are the number one stakeholders, apart from the Federal Government, and there is also the potential for them to become oil- producing states because now the stakes are high for them.
Not only partnership to explore, but the governors also come to us to request for support, and also to assure us of safe passage. Whether they come here or not, we must go and meet them because they are the chief security officers of their states.
Any good news from Gombe-Bauchi axis? Gas or oil? the
We have identified some prospects and hopefully we will drill and get something.
Both; That is why you call it hydrocarbon. If you get oil, fine, and if you get gas fine; both are hydrocarbon.
What timeline are we looking to commence drilling?
As soon as possible; but we cannot give a timeline in the immediate.