Maj.-Gen. Muhammadu Buhari (retd.)

THE plan by President-elect, Muhammadu Buhari, to commit resources to a renewed search for crude oil in the Chad Basin is a terribly bad idea and should be dropped. At a time of dramatic changes in the global oil and gas sector, featuring oversupply, falling prices and the emergence of many more producers, it is retrogressive to consider resuming the 40-year-old waste of public funds in a venture of uncertain benefits. Instead, Buhari should prepare a reconstruction plan for the North-East zone that would harness its untapped agricultural and solid minerals potential.

Buhari is reaching back into a time long gone and thinking of solutions that have no place in today’s globalised era. Receiving a delegation of notables from Borno State in Kaduna, he promised that his administration would reactivate the fast-receding Lake Chad and deploy “enormous resources to resume a vigorous search” for oil in the Chad Basin. We fully back his plan to replenish the vanishing Lake Chad to boost farming, irrigation and fishing which, back in 2001, provided food and income for over 10 million people in the basin area reaching seven countries, according to the United Nations Economic Commission for Africa.

But it is politics and not economics that has been driving the search for crude in the Chad Basin area. Begun in 1978 when Buhari was the Federal Commissioner (minister) for Petroleum, successive governments have committed funds, through the Nigerian National Petroleum Corporation, to prospecting for oil in the area with only little results. Buhari, especially, appears to have taken it up as a personal crusade as he resumed the search when he rode to power as head of state in 1984 on the back of a coup. It would be short-sighted and out of tune with today’s reality if he once more sees economic salvation in Chad Basin oil.

When he left office as military head of state in 1985, crude oil politics and revenues were of more paramount global importance. Today, the capacity of the Organisation of Petroleum Exporting Countries to solely determine crude prices has been smashed with the emergence of many more producers, reduced dependence of the United States and the West on OPEC member countries following America’s resurgence as a major producer, fuelled by its robust shale oil output and increased use of alternative energy sources. The International Energy Agency’s authoritative Oil Market Report on April 15 said global supply rose to 95.2 million barrels per day in March while demand was 93.6mpd. In 1985, the US bought over 40 per cent of Nigerian crude, but this declined progressively until it reached zero last year. Not only had the US become the world’s third largest producer by this year with 9mpd, after Russia (10.59mpd) and Saudi Arabia (9.69mpd), new entrants like Angola, Ghana, Ivory Coast, and a clutch of former Soviet republics in the Caucasus have since gained importance as producers and exporters with the IEA listing 115 countries as producers by March 2015.

The prospect of finding oil in the Chad Basin was brightened by oil finds in Niger Republic and Chad. In 2012, the then NNPC Group Managing Director, Andrew Yakubu, said an integrated team put together by a consortium of consultants set up by the Federal Government to study the possibility of exploring oil (in Lake Chad Basin) had identified an area of 3,350 square metres indicating the presence of oil. Before then, the NNPC had claimed that there was a possibility that oil could be found in commercial quantity in the Chad Basin because of the discoveries of commercial hydrocarbon deposits in neighbouring countries of Chad, Niger and Sudan, which have similar structural settings with the Chad Basin. Other areas of interest in the oil hunt include the Anambra, Bida, Gongola/Yola and the Sokoto basins alongside the Middle/Lower Benue Trough.

But how did Chad go about its oil search? A “Convention Agreement” signed in 1988 granted a consortium of petroleum companies a long term concession of 30 years to develop the oilfields in the Doba Basin, in southern Chad and to produce and transport oil to the market. Under the 1988 convention, the consortium was granted an initial exploration permit to 2004. By 1993, oil resources had been confirmed in the Doba Basin, within the original exploration territory designated in the 1988 convention agreement. The consortium, according to United Hydroncarbon, an international oil corporation, consists of ExxonMobil (the operator of the project), Petronas, Chevron and Esso Exploration and Production.

This is the way to go. Buhari should leave the private sector, which will be guided by profitability, to prospect for oil in the Chad Basin or anywhere else in Nigeria. We recommend that the state-owned oil prospecting firm be immediately privatised to avoid the kind of political influence that motivates the desperate quest by some elite faction to find oil, using common resources when proven oil finds in Anambra, Imo and Abia and others are kept in reserve.

Buhari should rather key in to the Borno Agricultural Transformation Plan under which Governor Ibrahim Shettima plans to plough in N30 billion “for economic rebirth and rehabilitation” of the insurgency-devastated state and create thousands of jobs. Oil resources have done more damage than good to Chadians. A report says the exploitation of oil has destroyed the local farmers’ production system, depriving them of their livelihood; it is polluting the water, soil and air; it is dividing the people and sowing despair. The stark reality is that since the first oil boom of 1973, our per capita income of $2,700, despite our enormous oil earnings, ranks far below Singapore’s $36,897.87 and Botswana’s $7,704, which have much less resources.

A well-thought-out programme on agriculture that provides 80 per cent employment, and exploitation of its proven mineral deposits – gypsum, feldspar, topaz, potash, iron ore, kaolin among others – to create processing industries, will cost far less, create mass employment and be less ecologically disruptive, is more desirable. Accompanied by an efficient programme of land reclamation from desertification and the reclamation of Lake Chad, should be the programme; not wasting taxpayers’ funds on a sectional venture of scanty prospect and dubious benefit to country.


Source: http://www.punchng.com/editorials/buharis-chad-basin-wild-goose-chase/

Please note that the view of the author does not indicate the views of OsamaB, thus this is just to understand the views of individual in this forum regarding the article.

Buhari is equipped with 18th century ideas. We don enter real one chance.

#babaonechance
I love transformation
I hate "change"
Quote me to blast me and ya will never make it in like

bad belle is allowed

Face it their is no oil in the chad basin this is just an expensive wide goose chase.

ozoigbondu:
Face it their is no oil in the chad basin this is just an expensive wide goose chase.

how far make we bet

Billyonaire:
Buhari is equipped with 18th century ideas. We don enter real one chance.

don't u believe in him again?

wachakuta:


how far make we bet

l don't gamble on a faceless forum

ozoigbondu:
l don't gamble on a faceless forum

we could make it facefull if u want

wachakuta:


we could make it facefull if u want

later

Begun in 1978 when Buhari was the Federal Commissioner (minister) for Petroleum, successive governments (northerners) have committed funds, through the Nigerian National Petroleum Corporation, to prospecting for oil in the area with only little results. Buhari, especially, appears to have taken it up as a personal crusade as he resumed the search when he rode to power as head of state in 1984 on the back of a coup.

I'm just short of words. I pity the people of the Niger Delta.

I don't know why you people are being so disingenious. NNPC itself said it will continue exploration in the region if security conditions improve. If oil is found elsewhere that is more revenue available for the country to spend on development, more employment and opportunities for growth. What is silly is pretending this isn't about some childish sense of entitlement some might feel in this belief that oil belongs to them. Perhaps there is fear that this "our oyel" leverage will be lost. Let us maturely seek development of Nigeria as a whole and stop being so myopic in our thinking. Other countries are advancing and diversifying their economy and investing in infrastructure, you are still fighting backward wars of false one-up-manships with a mentality that belongs in the 18th century. Wake up before the world leaves you behind. . .

Why is Buhari obsessed with Oil?

kingslly:
Why is Buhari obsessed with Oil?

Why are YOU obsessed with oil? NNPC is to continue exploring the North East region for oil. This is to show that this is not something starting off with Buhari. What is this fear of oil exploration in other parts of the country exactly? Continue with these childish insecurities while the rest of the world is progressing.

I think you are also obsessed with Oil because if you are objective with your reasoning you will realise dat with the current trend(alternative energy source)Crude oil will one day be so outdated like Coal. So why invest more in scouting for oil when we have more than enough?

SkyBlue1:


Why are YOU obsessed with oil? NNPC is to continue exploring the region for oil. This is to show that this is not something starting off with Buhari. What is this fear of oil exploration in other parts of the country exactly? Continue with these childish insecurities while the rest of the world is progressing.

Go N Die

kingslly:
I think you are also obsessed with Oil because if you are objective with your reasoning you will realise dat with the current trend(alternative energy source)Crude oil will one day be so outdated like Coal. So why invest more in scouting for oil when we have more than enough?

Again how disingenuous can you be? We have more than enough energy but we don't have light? Name one major industrialised country that is run on "renewables". Name just one and I will take you seriously and not as some poster trying to make a point against common sense. Then we can have a proper discussion. Crude oil might one day be outdated but that day is not now, and exploration globaly continues so please spare us the phoney morality.

see bad belle. The exploration will continue and anyone who feels otherwise should go hang. Buhari no dey look face

kingslly:
I think you are also obsessed with Oil because if you are objective with your reasoning you will realise dat with the current trend(alternative energy source)Crude oil will one day be so outdated like Coal. So why invest more in scouting for oil when we have more than enough?

Dude are serious abt oil been outdated?? Oil will go out like coal?? Bros every year there av been improved technology to get new sources of oil in fact there r technology today that can extend the life span of old rigs so tell me How's oil going to get outdated??

OK let's imagine that oil is going off which technology is going to replace it?? Solar, Electric charging?? Or u want a hungry world to turn food grain to energy??

Useless article, why don't u tell Niger deltans to go and start farming too? Wic other sector of the economy will bring the ryt structural development the North badly needs??

Why are we in the Niger scared of the North getting oil??