1.0 Introduction
The repeated attempt to explore and extract oil from a petroleum (oil and gas) prospect is commonly referred to as a ‘spud-in’ in industry circles. The renewed effort to re-investigate and explore areas previously examined and abandoned by multinational oil companies in the early 1990s is driven by the acquisition of more sophisticated geological, geophysical, and geochemical data by the Nigerian National Petroleum Company Limited (NNPC Limited). These advanced tools now provide better insights for resolving the complex subsurface terrain.
The Kolmani oil prospect, located in Nigeria’s northeastern region, was first discovered in 1999 by the Nigerian National Petroleum Corporation (NNPC) as part of its intensified oil exploration efforts across all Frontier Basins—a program that gained momentum in 2016. Kolmani is a village in Bauchi State, and its name originates from the Fulani term Kolmaani or Kolmanu, meaning “the calf is for Manu.”
Using a combination of Shell’s preliminary data from the Gongola Basin (Upper Benue Trough) and newly acquired datasets, NNPC made a breakthrough in 2019 with the discovery of commercial quantities of crude oil, gas, and condensate in the Kolmani River-2 Well. This success marked a significant milestone for petroleum exploration outside the Niger Delta.
On November 22, 2022, President Muhammadu Buhari officially launched the Kolmani River conventional oil development project. The initiative was designed to ensure that the inland petroleum resources would be harnessed for local value-added processing, thereby fostering industrial growth, economic development, and job creation in the region.
Following the inauguration, development commenced on the 1-billion-barrel Kolmani oil field, with an initial target of producing 50,000 barrels per day (bpd). While this is relatively small compared to Niger Delta fields, it remains a significant achievement for an inland basin. However, as of early 2025, the projected commencement year for production, activities at the Kolmani oil field have largely stalled.
The first signs of inactivity at the Kolmani site were raised by local residents, who observed that NNPC Limited and its partners had begun relocating critical equipment to other oil fields in Nasarawa State and the Lake Chad area. This reduction in on-site drilling operations has fueled concerns about the fate of the Kolmani project.
This article critically examines the tectonic evolution and petroleum potential of the Kolmani Basin, the reasons behind the apparent suspension of the project, and the implications of modern oil exploration and policy changes. This include the Petroleum Industry Act (PIA) of 2021, which was designed and signed into law on August 16, 2021, to promote sustainable development and ensure that host communities benefit from oil revenues.
This discussion forms part of broader public sensitization efforts by the Centre for Inland Basins Studies (CIBS), Ahmadu Bello University (ABU) Zaria. By using simple technical language, the goal is to highlight the importance of diversifying Nigeria’s oil production beyond the Niger Delta, focusing on projects like Kolmani, which hold promise for increasing foreign and local investment in Nigeria’s Frontier Basins, for oil and gas production.
2.0 Background History
The Kolmani Oil and Gas Project is located between the Kolmani and Benue rivers, spanning Gombe and Bauchi states. Initiated nine years ago, the project aimed to expand oil and gas exploration into Nigeria’s Frontier Basins, which include Anambra Basin, Benue Trough, Bida Basin, Chad Basin, and Sokoto Basin. This expansion was expected to boost crude oil production, generate foreign exchange, create employment, and drive regional economic development.
The Kolmani field is categorised as Oil Prospecting Lease (OPL) 809 and 810 and has 1 billion barrels of crude oil and 500 billion cubic feet of gas reserve potential within the licensed areas. It is Nigeria’s first onshore oil field outside the Niger Delta that has confirmed presence of hydrocarbons, mainly gas and condensate, with indications of liquid oil across Kolmani River-1 and Kolmani River-2 wells, in the northern region.
The Kolmani field is categorized under Oil Prospecting Leases (OPL) 809 and 810, holding an estimated 1 billion barrels of crude oil, and 500 billion cubic feet of gas reserves. This makes Kolmani Nigeria’s first confirmed inland oil discovery outside the Niger Delta, primarily containing gas and condensate, with promising liquid oil potential observed in the Kolmani River-1 and Kolmani River-2 wells.
Unlike coastal fields, transporting crude oil from Kolmani presents a logistical challenge since Nigeria’s export terminals are located along the Atlantic coast. To address this, NNPC Limited, the concessionaire for OPLs 809 and 810, proposed an integrated development strategy, ensuring that production could commence efficiently.
In November 2022, the Federal Government and private investors pledged over $3 billion to support the project. Key partners include NNPC Limited, Africa Oilfield Movers Limited (AOML), New Nigeria Development Company (NNDC) which is owned by the 19 northern states of Nigeria, Sterling Global Oil Exploration & Energy Production Company (SEEPCO) who are the asset operator.
The investment covers oil drilling and production infrastructure, a mini-refinery (120,000 barrels per day capacity), a gas processing plant (500 million cubic feet per day capacity), a fertilizer plant (2,500 tonnes per day production), a 300-megawatt (MW) power plant (to supply electricity to surrounding communities).
Initial projections suggested that drilling activities in Kolmani could extend until the year 2060. However, the current suspension of operations raises concerns about whether these long-term goals will be realized without engaging consultants like CIBS ABU Zaria.
3.0 Tectonic Setting and Stratigraphy
The Benue Trough, where the Kolmani Field is situated, plays a crucial role in shaping its geological evolution. This major rift basin extends from the Gulf of Guinea in the south to the Chad Basin in the north and is subdivided into three sections: Lower, Middle, and Upper Benue Trough.
At its northeastern end, the Upper Benue Trough (UBT) branches into two structural arms: an east-west (E-W) trending Yola arm and a north-south (N-S) trending Gongola arm, separated by the Zambuk Ridge.
The Gongola Basin, where the Kolmani Field is located, is an intra-continental sub-basin of the Upper Benue Trough. It formed as the Gongola arm of the UBT as part of the rifting associated with the West and Central African Rift System during the Early Cretaceous breakup of Gondwanaland (approximately 145 to 66 million years ago (Ma). The Kolmani Field extends into the Chad Basin in the subsurface but is not located within the Middle Benue Trough (MBT), where NNPC Limited is also conducting exploration activities.
The stratigraphy of the Gongola Basin contains a variety of sedimentary deposits that provide favorable conditions for petroleum generation and accumulation. Its geological history is marked by: i) pull-apart and rift tectonic settings, which influenced sediment deposition; and ii) syn-sedimentary faulting, which controlled lithofacies distribution and hydrocarbon formation.
The basin consists of Cretaceous to Tertiary sedimentary sequences, deposited in environments ranging from marine and transitional to continental and fluvial settings. The Santonian tectonic event (~85 Ma) caused regional uplift and deformation, after which subsidence and basin infill, controlled sedimentation.
Thus, the Kolmani Field consists of two major stratigraphic sequences: i) pre-Santonian Sequences (deposited during the rifting phase); and a post-Santonian Sequences (deposited after the Santonian tectonic event).
The pre-Santonian Sequences include Bima Sandstone (the oldest unit, resting unconformably on Precambrian basement rocks); Yolde Formation, Gongila Formation, and Pindiga Formation (which contains the Fika Shale). The post-Santonian Sequences are Gombe Sandstone, and Kerri-Kerri Formation (the youngest unit in the basin).
Geochemical analysis of sediments from the Kolmani-1 Well indicates that the rocks were derived from felsic source rocks and deposited under anoxic conditions, which align with the structural framework of the Benue Trough. The tectono-stratigraphic evolution of the Gongola Basin shares similarities with the Chad Basin and other interior rift basins in Africa, which have successfully yielded hydrocarbons.
4.0 Petroleum Plays and Petroleum Systems
The Kolmani Field is influenced by a northeast-southwest (NE-SW) trending Cretaceous rift system, which has resulted in thicker sedimentary deposits and a variety of geological structures favorable for oil and gas accumulation.
It exhibits a robust petroleum system characterized by high-quality source rocks, well-developed reservoir sandstones, effective traps, and regional seals. These factors collectively formed its petroleum system which enhance its hydrocarbon potential.
A petroleum play is defined by the presence of these components in a given area. The Kolmani Field features two major petroleum plays: i) a Lower Cretaceous Play; and ii) an Upper Cretaceous Play. These plays are defined by a complex network of petroleum system elements, including source rocks, reservoir rocks, traps, and seals.
The Lower Cretaceous play is primarily associated with weathered basement and sandstones of the Bima and Yolde Formations, while the Upper Cretaceous play includes sandstone beds within the Fika Shale.
The primary source rocks in the Kolmani Field are: i) Yolde and Pindiga Formations – rich in Type II and Type III kerogens, indicating potential for both oil and gas generation; ii) Fika Shale – which contains high organic matter and has strong hydrocarbon generation potential; iii) Coal and carbonaceous shales of the Gombe Formation, which may contribute to gas generation; and v) Pre-Bima lacustrine shale and Gongila Formation, which are prospective source rocks for the Lower Cretaceous play. Thermal maturity studies suggest that these source rocks have undergone sufficient burial and heating to generate hydrocarbons.
The primary reservoir rocks in the Kolmani River Wells include: i) Bima Formation; ii) Yolde Formation; iii) Pindiga Formation; and iv) Gombe Formation. These formations contain well-developed sandstones with good porosity and permeability, making them ideal for hydrocarbon accumulation.
The Kolmani Field features a combination of structural, stratigraphic, and combination traps, which are essential for hydrocarbon accumulation: The structural traps are formed due to tectonic activity and include: i) Inversion-related anticlines; ii) Faulted structures and tilted fault blocks; and Strike-slip fault-assisted closures, which enhance hydrocarbon entrapment.
The stratigraphic traps are formed due to rock type variations, including pinch-outs, where sandstones thin out against impermeable shales. Combination traps are formed by a mix of structural and stratigraphic elements, influenced by rift-related tectonics.
5.0 Reasons for the Suspension of the Kolmani Oil Field Project
Despite its strategic significance and initial enthusiasm, the Kolmani oil field has faced significant setbacks, leading to the suspension of drilling operations. Reports indicate that equipment has been relocated to other regions, including Nasarawa State and the Lake Chad area. While official reasons for the suspension remain undisclosed, multiple factors including operational challenges, economic constraints, investment uncertainty, political influences, administrative disputes, and environmental concerns that may have contributed to the halt in activities.
i) Operational Challenges: The development of the Kolmani oil field has encountered numerous operational difficulties, including infrastructure deficits, security threats, logistical constraints, and environmental issues.
Infrastructure deficits: The transportation of heavy machinery has resulted in infrastructural damage, notably the collapse of a crucial bridge connecting Kolmani to other regions. While repair efforts are underway, this disruption has significantly affected logistics. In response, the Gombe State Government has approved the construction of roads and essential infrastructure to support the project’s resumption.
Security threats: While local leaders have taken measures to mitigate security risks, broader regional instability – marked by kidnappings, banditry, insurgency, and farmer-herder conflicts, remains a major concern. These threats strain local resources, discourage investment, and undermine the project’s long-term viability.
ii) Economic and Investment Challenges: The Kolmani project holds strategic importance as Nigeria’s first major oil venture in the North, aimed at reducing regional economic disparities and enhancing energy security. However, financial and investment hurdles have stalled progress.
High capital requirements: Developing the field is capital-intensive, with estimated costs reaching $2.9 billion. Given Nigeria’s broader economic challenges, funding priorities may have shifted, jeopardizing the project’s feasibility.
Investor confidence: The project’s suspension exacerbates concerns about the stability of Nigeria’s oil sector. Frequent project delays, coupled with infrastructural and regulatory uncertainties, may deter foreign investment, reducing capital inflows critical to sustaining upstream developments.
Economic ramifications: The suspension has dashed expectations of wealth creation, job opportunities, and regional industrialization. It also undermines Nigeria’s strategy of diversifying oil production beyond the Niger Delta, leaving the country vulnerable to regional disruptions in energy supply.
iii) Political and Administrative Disputes
The Kolmani oil project is entangled in political and administrative complexities, which may have contributed to its suspension. These include:
Shifts in government priorities: The transition to a new administration has possibly altered national energy priorities, leading to a deprioritization of the project. Despite President Bola Tinubu’s expressed support for northern oil exploration, the relocation of drilling equipment from Kolmani to other sites has fueled skepticism regarding the federal government’s commitment.
Tensions between federal and state authorities: Local leaders and lawmakers have expressed frustration over the project’s stagnation, viewing it as federal neglect of the region’s economic prospects. Disputes between the Nigerian National Petroleum Company Limited (NNPCL) and its development partners, including contractors such as Halliburton and Drillog Petro-Dynamics, may have further contributed to delays.
Commercial viability concerns: Security risks, shifting global energy policies favoring decarbonization, and uncertainties surrounding the regional gas pipeline strategy have raised doubts about the project’s long-term profitability. These factors could influence government and investor willingness to sustain operations.
While oil exploration offers economic opportunities, it also raises the following significant environmental and social concerns, particularly in a fragile ecosystem like Kolmani: i) Land and water disruptions; and ii) climate change impacts.
Heavy drilling and infrastructure development have altered the local terrain, exacerbating soil degradation, erosion, and water scarcity. Communities have reported decreased agricultural yields due to environmental disturbances.
The broader Northeast region has been experiencing extreme weather conditions, including desertification, heatwaves, and irregular rainfall. These environmental pressures, coupled with deforestation caused by oil exploration and farming activities, threaten local livelihoods.
Operators have pledged to implement a “zero gas flare regime” and adopt environmentally friendly practices, including buried pipelines and noise reduction measures. However, given Nigeria’s historical challenges in enforcing environmental regulations, particularly in oil-producing regions like the Niger Delta, skepticism remains over the effectiveness of these promises.
7.0 Conclusion and Recommendations
The Kolmani oil and gas project represents a strategic national asset with the potential to reshape Nigeria’s energy landscape and significantly boost economic development in Northern Nigeria. Initial estimates suggested the presence of a billion barrels of crude oil, with early projections targeting production levels of 50,000 barrels per day.
If fully developed, the project could pioneer a new era of inland oil production, driving economic development, enhance Nigeria’s energy security, promote local refining, reduce reliance on oil imports, job creation, and generate substantial financial resources for local and national development. However, despite early progress, the project has experienced significant stagnation and delays.
The suspension of operations has raised concerns among stakeholders in Bauchi and Gombe states, who fear the project’s potential is being undermined by operational challenges, shifting investment priorities, regulatory uncertainties, and infrastructural deficits. The lack of activity at the site has led to frustration and disappointment among local communities, who had anticipated economic growth, job creation, power generation, and infrastructure development tied to the project.
While the Kolmani project has faced setbacks, there is no official indication that it has been permanently abandoned. NNPC Limited remains engaged in oil exploration across Nigeria’s inland basins, including the Kolmani field, where the company has drilled the Kolmani River-3 and Kolmani River-4 wells.
These efforts align with a broader strategy to expand exploration activities in frontier basins to strengthen Nigeria’s energy sector. However, the current inactivity at the site raises critical concerns regarding economic diversification, investor confidence, political stability, and energy security. Addressing these issues will require strong political will, strategic investment, and coordinated efforts among key stakeholders.
The suspension of the Kolmani oil project highlights the complex interplay of operational, economic, political, and environmental factors that shape Nigeria’s energy landscape. raises concerns about the future of inland oil exploration in Nigeria.
While the project holds immense potential for regional development and national energy security, overcoming these challenges will require strategic investment in petroleum infrastructure, policy commitment that ensure effective implementation of the Petroleum Industry Act (PIA) to ensure sustainable exploration and robust environmental safeguards, and diversified energy policies to fully harness the potential of Frontier Basins like Kolmani.
To overcome the current challenges and ensure the successful resumption of operations at the Kolmani oil field, a clear roadmap addressing funding, infrastructure, security, and sustainability concerns will be critical to ensuring the project’s revival and long-term success. To successfully do all these, the following recommendations should be considered:
i) Presidential and Stakeholder Intervention: Given the strategic importance of the Kolmani project, presidential intervention is essential. A coordinated effort involving the federal government, NNPC Limited, state governments, contractors, and local communities should be established to address the operational, financial, and regulatory challenges hindering progress.
ii) Policy and Infrastructure Reforms: The success of the Kolmani project depends on a stable investment climate, clear regulatory frameworks, and improved infrastructure. The government should implement policy reforms to restore investor confidence, streamline regulatory processes, and address logistical challenges, including road networks and security concerns.
iii) Strengthening Local Engagement through Host Community Associations: To foster inclusivity and ensure that local interests are considered in project decisions, Host Community Associations should be established. These associations can serve as a bridge between the project developers and local communities, facilitating better communication and addressing grievances.
iv) Reaffirming Commitment to Integrated Development Plans: NNPC Limited, in collaboration with its partners, should reaffirm its commitment to advancing Kolmani’s integrated development plan, including the refinery and gas processing facilities.
v) Reassessing Investment Strategies: To attract and retain investors, there is a need to reassess financing strategies, explore public-private partnerships, and ensure that funding allocations align with the project’s development phases, with clear roadmap and project timelines.
By implementing these measures and possibly engaging the Centre for Inland Basins Studies (CIBS), Ahmadu Bello University (ABU) Zaria as consultants, the Kolmani project can be revived, ensuring that its economic and energy potential is fully realized. A proactive approach by them will restore confidence in the project and contribute to Nigeria’s broader development.
Prof. U. A. Danbatta is the current Director of the NNPCL funded
Centre of Inland Basins Studies (CIBS), Phase II Site, Ahmadu Bello University Zaria,
Nigeria; (uabatta@gmail.com; uadanbatta@abu.edu.ng).
