Buhari: Despite decline in fossil fuel funding, we got over $3bn investment for Kolmani project

President Muhammadu Buhari says the Kolmani Integrated Development Project (KIPRO) has attracted investments worth over $3 billion.

The project, situated in the boundary of Bauchi and Gombe states, is the first crude oil drilling project in north-eastern Nigeria.

Speaking at the project’s groundbreaking ceremony on Tuesday, Buhari, who is also the petroleum minister, said the project would bring many benefits to the nation, including energy security, financial security, food security as well as overall socio-economic development.

He described the project as “significant” considering that efforts to find commercial oil and gas outside the Niger Delta Basin were attempted for many years without the desired outcomes.

“We are pleased with the current discovery of over one billion barrels of oil reserves and 500 billion cubic feet of gas within the Kolmani area,” Buhari said.

“There is a huge potential for more deposits as we intensify exploration efforts.”

Buhari further explained that he had instructed the Nigerian National Petroleum Company (NNPC) Limited to de-risk the project to attract investments.

“Considering the landlocked location, the huge capital requirement, and the economics of the project with a challenging proposition, consequently from the onset, I instructed NNPC Limited to utilise and leverage its vast asset portfolio across all corridors of its operations to de-risk the project to attract [the] much-needed investment. I have directed the NNPC to continue along these lines,” he explained.

“It is, therefore, to the credit of this administration that at a time, where there is a near-zero appetite for investment in fossil energy coupled with the location challenges, we are able to attract investment of over $3 billion to this project.

“This will surely be a reference subject for favourable discussion in the industry that we pursue an energy transition programme that will culminate in our country achieving net-zero carbon emission by 2060.”

The president also urged NNPC and its strategic partners to ensure a harmonious relationship with the local communities.

“I have engaged the governors of Bauchi and Gombe states, and they have given me assurances of their unwavering commitment and willingness to ensure support and cooperation in these localities that these activities affect the local populations,” Buhari added.