Governor Alex Otti of Abia State is set to lead a team from ABTAN Energy Ltd. to meet with the Nigerian National Petroleum Company Ltd (NNPCL) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to revive the capped oil wells in his state.
The oil wells in Abia have been dormant for over two decades, since 2001.
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Mr Otti disclosed this on Tuesday, 4 March, when he met with the leadership of the Petroleum Technology Association of Nigeria (PETAN), led by the Chairperson, Wole Ogunsanya, who came to brief him on the progress of the SPV between PETAN and the Abia State Government.
Mr Ogunsanya made a presentation on the profitability and what they hope to achieve through ABTAN Energy in a few years.
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ABTAN Energy Ltd aims to produce 20,000 barrels of oil per day initially, with an estimated 100 million barrels of oil in the capped wells.
Governor Otti expressed optimism about the project’s profitability, citing the current oil price of $75 per barrel.
“I’m 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.
“The advantage we bring is that, this is an industry we understand very well, and I have given all the support to the commissioner to just go ahead and drive the process to a conclusion,” Governor Otti said.
“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 NUPRC 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.
“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,” the governor added.
Mr Otti directed the commissioner for petroleum and mineral resources to quickly work out the details of the visit to NNPC, NUPRC, and other relevant authorities.
He thanked PETAN for its commitment to the project and urged them to swiftly assemble the necessary finances.
Commendations for Otti
Earlier, the Chairperson of PETAN, Mr Ogunsanya presented to the Governor the Certificate of Incorporation of ABTAN Energy Ltd and described Abia Oil as sweet oil, according to the API standard, and very easy to refine.
He requested the governor to join them on a courtesy visit to NUPLC to fast-track and finalise the processes involved in re-entering and walking over the capped wells in the state.
He assured the governor of his team’s readiness to achieve the investment drive in Abia as the first of its kinds in the entire federation with a projected revenue of over USD1 billion in the first five years of operations.
He commended Governor Otti for his infrastructure development across the state and the unlocking of business opportunities in Abia.
In his remarks, the Abia State Commissioner for Petroleum, Joel Ogbonna, thanked Governor Otti for his support.
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He noted that several investors were already interested in investing in the state’s petroleum and mineral resources sector.
The spokesperson for PETAN, Innocent Akuvue, expressed gratitude to Governor Otti for his dedication to the joint venture project.
He praised the governor’s commitment to transparency and accountability, which has motivated PETAN to drive the project forward.
He noted that the overbearing personal interests of public officeholders in some other states they visited in the past killed the projects they proposed.
Several commissioners in Abia and other government officials joined Governor Otti at the presentation and discussions.
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