NNPC’s new boss, Bayo Ojulari, announces resumption of oil drilling in northern Nigeria and efforts to mend ties with Dangote Refinery
Hope is on the horizon for northern Nigeria as the Nigerian National Petroleum Company Limited (NNPC) under its new Group Chief Executive, Bayo Ojulari, has pledged to resume long-suspended oil drilling projects in the region.
Speaking to BBC News Hausa on Monday, Ojulari confirmed that the initiative, initially launched over two years ago by the administration of former President Muhammadu Buhari in the Bauchi-Gombe border area, would be revitalised.
The announcement comes after a period of uncertainty that saw the promising project stall for undisclosed reasons, much to the disappointment of northerners who had anticipated the economic benefits of becoming an oil-producing region.
Ojulari appealed to residents for patience, assuring them of the NNPC’s commitment to returning to work on the Kolmani oil field and other identified sites.
“We will continue with the oil drilling in Kolmani and other places. After the oil drilling, we will also ensure that we complete the gas pipeline from Ajaokuta to Kano,” Ojulari stated, outlining the broader vision for energy infrastructure development in the north.
He emphasised the potential for these projects to revitalise dormant industries and spur the creation of new businesses, ultimately leading to increased wealth and opportunities for the local population. “Therefore, we must return and continue this project,” he affirmed.
The Kolmani oil drilling project, launched with considerable fanfare in November 2022, marked a historic moment as the first oil exploration endeavour in the northeast.
Following this, the NNPC had announced plans to commence drilling in Nasarawa State in the north-central region by March 2023, a timeline that was not met, prompting calls for explanation from Nigerians.
In the BBC interview, Ojulari, himself a northerner, expressed surprise at some of the reactions following his appointment.
“We will continue with the oil drilling in Kolmani and other places. After the oil drilling, we will also ensure that we complete the gas pipeline from Ajaokuta to Kano.” – Bayo Ojulari
He called for the support and prayers of both northerners and the wider Nigerian populace to facilitate progress in the region and across the nation.
In a significant development for the downstream sector, Ojulari also revealed that he has initiated steps to resolve the existing disagreements between the NNPC and the Dangote Petroleum Refinery.
Acknowledging the previous strained relationship, he commended Aliko Dangote for his efforts towards reconciliation and stressed the importance of a collaborative partnership to ensure energy security for Nigerians.
The NNPC and the Dangote refinery had reportedly been in competition, particularly concerning crude oil supply, since the refinery commenced operations.
A notable point of contention was the NNPC’s brief suspension of the naira-for-crude deal in March, which led to price fluctuations before a federal government directive mandated its continuation.
Ojulari expressed confidence that a new era of cooperation was dawning. “We sat down and talked about the conflict.
From now on, we will work together to achieve progress as needed, so that people who seek fuel at filling stations can get it when they want it,” he said, assuring that future issues would be addressed through mutual understanding rather than disputes.
“We will join hands for the benefit of Nigeria,” he added.
Addressing the broader economic context, Ojulari noted that the global crude oil price downturn had impacted Nigeria’s projected revenue.
He stated that while the budget was predicated on higher oil prices, efforts were underway to reduce operational costs within the oil sector to ensure sufficient income for national development.
Nigeria’s leading energy firm Oando plans to raise up to $750 million this year for a drilling campaign that could boost output by 300%, tapping improved investor appetite for West African producers amid turmoil linked to the Iran war, the Group Chief Executive of the oil firm, Jubril Adewale Tinubu, CON, told Reuters recently in an interview.
The oil and gas company is among a handful of local companies that have snapped up assets from oil majors in the past decade as they exit Nigerian onshore. This year, surging energy prices should open more funding sources for producers in the region, Tinubu said.
We are pushing very, very hard towards getting the financing that we need to do an extensive drilling campaign,” Tinubu told Reuters.
Nigeria is Africa’s biggest oil producer with crude and condensate output of around 1.6 million barrels a day.
Oando, whose production averaged just over 32,000 barrels of oil equivalent per day in fiscal 2025, aims to drill as many as 100 wells to boost output, particularly from assets purchased from Western majors ConocoPhillips and Eni.
While in the past the company had struggled with securing cash for drilling due to investor worries that Africa was an “unsafe environment”, the Iran war and Russia’s invasion of Ukraine in 2022 have shifted that view, Tinubu said.
“Africa is very, very peaceful compared to these regions,” he said.
Already, Tinubu said there was a shift in demand for Nigeria’s crude, with more cargoes sailing to Asia to replace Gulf oil trapped due to the closure of the Strait of Hormuz.
FUNDING SQUEEZE FROM EUROPE
Oando has raised $3 billion-$4 billion in the past decade, much of it from European banks, the GCE said, the bulk of which went toward acquisitions.
European banks had now almost completely withdrawn from African hydrocarbons due to climate concerns, he said, pushing Oando to funders including the African Export-Import Bank and the African Finance Corporation, and to oil trading houses including Vitol, Trafigura, Glencore and Mercuria.
However, Africa needed more “substantial long-term funding”, he added.
More Gulf banks were interested in hydrocarbon projects in Africa and more parties were joining their syndications, while private equity funds and hedge funds were also more active in funding African energy, he said.
Oando recently expanded into Angola, and Tinubu said they are exploring opportunities in Ghana and Ivory Coast. Africa should pool capital available at home, via pension funds and other sources, to fund large-scale capital projects, he added.
Geopolitical turmoil will have “long-reaching strategic implications for global energy security”, he said, and keep focus on West Africa’s reserves.
“Even if the ceasefire lasts, which, hopefully it will, it wouldn’t change the fact that consistently, you’re going to find disruptions,” he said.
GASOLINE EXPORTS, BUSINESS OPPORTUNITIES
Nigeria, Tinubu said, is well placed to draw funding after a landmark 2021 overhaul of its hydrocarbon law and reforms by current President Bola Tinubu, his uncle, to currency and costly petrol subsidies.
The new 650,000 barrel-per-day Dangote Oil Refinery on the outskirts of Lagos, Tinubu said, highlighted the value of Nigeria’s resources.
Tinubu, whose company was once among the nation’s largest fuel importers, said imports were now only needed to test for pricing or during refinery maintenance.
Longer term, Tinubu hopes to exploit some of Oando’s own gas production for petrochemicals and fertilizers to further boost the value added to Nigerian resources.
The company was working to “streamline” financials to avoid further delays in filing audited statements with the Nigerian Exchange after deadline extension in recent years.
In August, Oando’s board signed off on a proposal to launch a multi-instrument issuance programme of up to $1.5 billion.
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