The official project sign-off between GEIL (Otapikpo) JV and Federal University of Technology Akure (FUTA) on research and development.

The agreement which is for five years became active immediately it was signed yesterday in Abuja.

He noted that the major challenge in the onshore operation is the cost of drilling which is expensive.The chairman explained that any failure to get the drilling right could ruin a company.

He said in line with the Nigerian Content Act 2010, the GEIL has expanded its horizon to look at on- shores and the reserves, especially how to increase production and drilling prospects.His words: “We have expanded our horizon compared to the Nigerian Content Development Act 2010 to look at onshores and the reserves. One of the things we did was to research into one of the major challenges presently facing the oil and gas E&P companies.

“What is that challenge? That challenge is the proper characterization of reserviours with their hydrocarbons assets, to increase production of and explore drilling prospects.“This is because here drilling wells is not cheap. Drilling oil well onshore these days cost about $120 million. You have to get it right otherwise that will be the end of your company.”

Commenting on the agreement, Adegbulugbe said it was for the local oil firm to showcase its commitment to enhancing indigenous capacity.He expressed optimism that the research will reduce the risk of oil well drilling.

SOURCE: THENATION