North to Begin Oil Exploration Next Year

The New Nigeria Development Company (NNPC) owned by the 19 northern state governments has disclosed plans to commence exploration of oil and gas in the lake Chad area in North East.

Addressing Journalists shortly after the Company's Annual General Meeting in Kaduna, the Board of

directors Chairman, Alh. Bashir Mohammed Dalhaturegreted that the insecurity in the North-East has affected the take off of the exploration.

The NNDC said, "oil and gas blocks have been discovered in the North, but for security challenges in the North-east exploration will have gone far."

"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, because we are 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 insurgency in northern parts of the country.

He said the continuous decline in government revenue which resulted in reduction of foriegn reserves as well as devaluation of the naira posed challenges to the operations of the NNDC.

He said despite the tough operating environment and the continuous security challenges, the company remained resolute and focused in realizing its objectives.

The chairman said the operating income of the company increased by 42 percent from N651.2 million to N923.9 million while a 73 percent increase was recoded 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 percent from 16.7 kobo to 31.2 kobo and 4.4 percent net assets per share from 14.1 to N18.5 when comoared with results of the preceding year of 2014.