President Bola Ahmed Tinubu has approved the issuance of all key regulatory licenses for the Kolmani Integrated Development Project, a multibillion-dollar oil exploration initiative straddling the border of Bauchi and Gombe States.
The announcement, made during the groundbreaking ceremony for the permanent site of the Bauchi Oil and Gas Academy in Alkaleri, signals a renewed push to unlock the hydrocarbon potential of Northern Nigeria and drive economic growth.
The Kolmani Integrated Development Project, first inaugurated in November 2022 by former President Muhammadu Buhari, marks a historic step in Nigeria’s quest to expand oil exploration beyond the traditional Niger Delta region.
Located in the Kolmani River II oil field within the Gongola Basin of the Upper Benue Trough, the project is estimated to hold reserves of approximately one billion barrels of crude oil and 500 billion cubic feet of gas. This development is poised to reshape Nigeria’s energy landscape, with the potential to enhance energy security, create jobs, and boost national revenue.
The approval of the regulatory licenses, as disclosed by Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), underscores the Tinubu administration’s commitment to maximizing Nigeria’s hydrocarbon resources.
Speaking at the ceremony, Lokpobiri emphasized that the president’s directive was driven by the need to activate all available oil platforms to increase production. “Mr. President’s vision remains focused on harnessing the full potential of our energy sector as a catalyst for national prosperity,” Lokpobiri stated, according to a press release by his Special Adviser on Media and Communication, Nneamaka Okafor.
The Kolmani project is a fully integrated development encompassing upstream oil production, a 120,000-barrel-per-day refinery, a gas processing plant with a capacity of 500 million standard cubic feet per day, a 300-megawatt power plant, and a fertilizer plant capable of producing 2,500 tons per day.
These components are designed to deliver far-reaching benefits, including energy security, food security through fertilizer production, and economic development for the host communities in Bauchi and Gombe States. The project has already attracted over $3 billion in foreign direct investment, a testament to its economic significance despite global hesitancy toward fossil fuel investments.
Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), announced that the state-owned energy firm is preparing to resume drilling activities at the Kolmani oil field after nearly two years of inactivity.
We will continue with the oil drilling in Kolmani and other places, Ojulari said in a recent interview with the BBC. He highlighted the project’s potential to revive dormant businesses, create new opportunities, and increase wealth in the region. Additionally, NNPCL plans to complete a gas pipeline from Ajaokuta to Kano, further enhancing the project’s impact on Nigeria’s energy infrastructure.
The project’s regulatory framework is governed by the Petroleum Industry Act (PIA) of 2021, which provides for licenses such as the Petroleum Prospecting License (PPL) for drilling and exploration and the Petroleum Mining Lease (PML) for crude oil and gas extraction.
These licenses, now secured, pave the way for NNPCL and its partners—New Nigeria Development Company Ltd., Africa Oilfield Movers Ltd., and Sterling Global Oil—to advance the project’s development.
As Nigeria navigates a global energy transition, Lokpobiri emphasized that oil and gas remain central to the nation’s economic survival. “Oil and gas are not disappearing.
They remain critical to our economic growth,” he said, clarifying that the Paris Agreement advocates for emission reduction rather than a halt in fossil fuel investment. The Kolmani project, with its integrated approach, aligns with Nigeria’s balanced energy strategy, leveraging hydrocarbon assets while fostering local capacity and sustainable development.
WHAT YOU SHOULD KNOW
The Kolmani Integrated Development Project stands as a beacon of economic promise for Northern Nigeria and the nation at large.
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