Abia State Governor, Dr. Alex Otti, is set to lead a team from ABTAN Energy Ltd; the State’s jointly owned oil company, to meet with NNPC and NUPLC authorities in a bid to fast-track the re-entry into Abia’s capped oil wells, which have remained dormant since 2001.
Governor Otti disclosed this on Tuesday, during a meeting with the leadership of the Petroleum Technology Association of Nigeria (PETAN), led by Chairman Engr. Wole Ogunsanya.
The Abia State Government had recently entered into partnership with the Petroleum Technology Association of Nigeria (PETAN) to establish a jointly owned Oil Company named ABTAN Energy Ltd.
The initiative is expected to provide the Government with direct access to participate in the oil industry as well as strengthen the business relationship between the State and PETAN.
ABTAN Energy Ltd aims to produce 20,000 barrels of oil per day from Abia’s capped wells, which hold an estimated 100 million barrels of crude oil.
Speaking during the business meeting held at Nvosi Isialangwa South, Governor Otti expressed confidence in the project’s viability, citing the current oil price of $75 per barrel and assuring that even in fluctuating market conditions, the venture remains profitable.
“I am very glad that you have gone to this level in less than one year after we met. Your presentation was very good, very well understood, and not unduly aggressive.
“75 dollars per barrel is where we are now; before now, it was 100 dollars and slightly above. In spite of whatever happens between Russia and Ukraine, I don’t think that we will go below 55 dollars. Anyhow you look at it, it is still very profitable”, Governor Otti stated.
He emphasized the state government’s full backing for the project and revealed that he had already discussed the initiative with relevant authorities, who responded positively.
“On my own, I have also mentioned to the authorities that this is the direction we are going, and they were very happy. So, the courtesy visit you are talking about, I think it should happen as quickly as possible.
“It will be nice for us to not just stop at NUPLC but also see the Group Managing Director of NNPC. Let’s hit it from the top, even though he’s aware that we are doing something like this”, he added.
Governor Otti noted that since some of Abia’s oil wells were capped in 2001, a significant amount of work is required for re-entry and production restart.
“I’m aware that some of our wells were capped in 2001, and when you want to re-enter and do a walkover, you still need a lot of time. So, the earlier we start, the better.
“I want to assure you that we are committed to it. I think that we really need to move quickly because time waits for nobody.” Gov. Otti noted.
The Governor directed the Commissioner for Petroleum and Mineral Resources to finalize arrangements for the high-level engagements with NNPC, NUPLC, and other relevant agencies.
He thanked PETAN for their commitment and dedication to the project and urged them to swiftly assemble the necessary finances.
Earlier, the PETAN Chairman, Engr. Wole Ogunsanya, presented the Certificate of Incorporation of ABTAN Energy Ltd to the Governor, describing Abia’s crude as “sweet oil” that meets API standards and is easy to refine.
He urged Governor Otti to personally lead the delegation to NUPLC to finalize re-entry and walk over processes of the capped oil wells in the State.
Engr. Ogunsanya projected that the Abia oil venture would generate over $1 billion in revenue within its first five years, making it the first of its kind in Nigeria.
He also commended Governor Otti’s infrastructural strides and efforts to unlock new business opportunities in Abia State.
In his remarks, the Commissioner for Petroleum, Prof. Joel Ogbonna, appreciated Governor Otti’s unwavering support and revealed that multiple investors had already shown interest in the State’s Petroleum and Mineral resources sector.
Also speaking, PETAN Publicity Secretary, Engr. Dr. Innocent Akuvue, praised Governor Otti’s commitment to transparency and accountability, which he said had encouraged PETAN to fully invest in the project.
He noted that in some other states, projects like this failed due to overbearing personal interests of public officials, but in Abia, Governor Otti has prioritized the State’s collective benefit.
