Plans to commence exploration of oil and gas in the north

The New Nigeria Development Company
(NNDC), a business conglomerate of the 19
northern state governments, has disclosed
plans to commence exploration of oil and gas
in the Lake Chad area of North-East.
“Oil and gas blocks have been discovered in
the North. But for security challenges in the
North-East, exploration would have gone far,”
the company said in a media briefing after its
annual general meeting in Kaduna yesterday.
The Board of Directors’ Chairman, Alhaji Bashir
Mohammed Dalhatu, who addressed journalists,
expressed regrets that the insecurity in the
North-East had affected the take off of the
exploration.
“But we have since re-engaged our people to
be totally committed to the oil exploration and
exploitation of both oil and gas resources. We
believe that will spring boot revival of economy
in the region,” he said.
Asked when the exploration will commence, the
NNDC’s board chairman said: “We are
commencing the exploration within the year
2016. We are already talking with technical
partners that would help us explore the
resources.”
According to him, the company was able to
post profit despite political instability and the
activities of insurgents in the northern parts of
the country.
He said the continuous decline in government
revenue, which resulted in reduction of foreign
reserves as well as devaluation of the naira,
posed challenges to the operations of the
NNDC.
Dalhatu also reiterated that despite the tough
operating environment and the continuous
security challenges, the company remained
resolute and focused in realising its objectives.
The chairman said the operating income of the
company increased by 42 per cent from
N651.2 million to N923.9 million while a 73
per cent increase was recorded in operating
profit before tax from N137.2 million to N237.2
million.
He said further increases were recorded in
earnings per share of 87 per cent from 16.7
kobo to 31.2 kobo and 4.4 per cent net assets
per share from 14.1 to N18.5 when compared
with results of the preceding year of 2014.
“Notwithstanding the tough operating
challenges, the company continued it efforts of
developing quality manpower for the North and
for the country in general,” he stated, adding
that in that respect, 541 charteres accountants
were sponsored to qualification by the company
since the inception of the programme in 2007.
“We shall continue to consolidate on the
achievements recorded so far as we are
convinced that given a more stable polity and
improved business environment, the goals and
objectives as enshrined in the company’s five-
year strategic plan will be archived,” he said,
adding that this includes 15 per cent annual
returns on investment.