The Nigerian Petroleum Industry Act, Frontier Basins Exploration and the Global Energy Transition

Abstract

The Nigerian Petroleum Industry Act (PIA) passed into Law in 2021 has the major goal to reform the Nigerian petroleum sector operations into policy, regulations and business (commercial). In the line of this, the Nigerian National Petroleum Corporation (NNPC) was transformed to NNPC Ltd to operate entirely commercially with a supervising Board and registration with the Corporate Affairs Commission. Such a commercial mandate will entail the need to explore and produce more oil and gas for export and domestic utilization. Oil is becoming less attractive as an energy source but gas is gaining momentum as a clean energy source in the global energy transition road-map. The global energy transition road-map is drawn around clean, alternative and renewable energies. The Nigerian frontier basins have recently come on board as new business opportunities with huge petroleum gas resources. These frontier basins comprise the Anambra, Benue, Bida, Chad (Nigerian sector), Dahomey, and Sokoto Basins as well as the Deep and Ultra-deep offshore. Maturing these basins through data generation and production of the gas resources therein will promote the nation’s gas utilization and gas expansion programmes meant to promote industrialization and huge employment generation, grow the economy and engender positive social transformation. The clause in the PIA that promotes frontier exploration is well-thought out. Available and required geological data needed to mature the frontier basins to producing basins are presented in this paper. The success made in Kolmani River-2 well discovery is a case study.