President Muhammadu Buhari says he’s elated the crude oil has been discovered in Maiduguri.
The Federal Government disclosed this in Abuja yesterday.
This comes after several months of exploratory activities in the troubled north-eastern state.
The Permanent Secretary of the Ministry of Petroleum Resources, Mrs. Jamila Shua’ra, signed an agreement at a joint venture ceremony with a foreign firm yesterday.
The presidency, however, refused to state the particular area in Borno State where oil was discovered.
The government also did not disclose if the oil discovered was found in commercial quantity.
Shua’ra attributed the discovery of oil in Borno and Lagos states to the doggedness of the present administration.
The petroleum ministry also noted that the introduction of Price Modulation Mechanism and Appropriate Pricing Framework had helped the Federal Government to save N1.4 trillion.
The ministry said the money would have been expended on subsidy payment between May and November.
Also, the ministry announced that the Department of Petroleum Resources would conduct bid rounds for oil blocks in 2017.
The ministry says it will make the bidding open so that new players can enter the oil sector and stimulate competition.
Vice President Yemi Osinbajo disclosed that the elimination of subsidy had removed a huge financial burden from the FG.
According to him Yemi, “ The FG had commenced moves to raise the country’s domestic refining capacity.
“We will do this by repairing the existing refineries, licensing modular refineries and supporting the development of private refineries.
“Recently, the Federal Executive Council approved new measures and strategies aimed at eliminating the burden of joint venture cash calls arrears and easing future payments in the upstream sector.
“The measures will boost additional investments and raise daily production levels to about 2.8 million barrels per day, mbpd.”