BREAKING NEWS: Governor Otti Moves to Unlock Abia’s Oil Wealth: Talks with NNPC to Revive Dormant Wells”

Abia State Governor, Dr. Alex Otti, has announced plans to lead a delegation from ABTAN Energy Ltd to engage with authorities of the Nigerian National Petroleum Corporation (NNPC) and NNPC Upstream Petroleum Limited (NUPLC). The discussions aim to expedite the re-entry into the state’s capped oil wells, which have remained dormant since 2001.

Governor Otti disclosed this on Tuesday, March 4, during a meeting with the leadership of the Petroleum Technology Association of Nigeria (PETAN), led by its Chairman, Engr. Wole Ogunsanya. The meeting focused on the progress of the Special Purpose Vehicle (SPV) partnership between PETAN and the Abia State Government and a presentation on the project’s profitability and long-term prospects through ABTAN Energy Ltd.

ABTAN Energy Ltd plans to commence production with an initial output of 20,000 barrels of oil per day, with estimates indicating that the capped wells contain up to 100 million barrels of oil. Governor Otti expressed confidence in the venture, emphasizing its profitability given the current global crude oil price of $75 per barrel.

“I’m very glad that you have reached this stage in less than one year after our initial discussions. Your presentation was clear and well-articulated. At $75 per barrel, the project remains highly profitable. Even if global prices fluctuate, I do not foresee it dropping below $55 per barrel, making this a viable investment,” Governor Otti stated.

Highlighting the state government’s commitment, he assured PETAN that all necessary support would be provided to expedite the project. He also disclosed that preliminary engagements with relevant authorities have been positive, reinforcing the need for a high-level meeting with the Group Managing Director of NNPC.

“I have informed the authorities about our direction, and they are in support. We should move quickly, engage directly with the top leadership at NNPC and NUPLC, and finalize all required processes. Since re-entering and conducting a walkover of these wells takes time, the sooner we start, the better,” the Governor added.

Governor Otti directed the Commissioner for Petroleum and Mineral Resources, Prof. Joel Ogbonna, to finalize the details of the planned visit to NNPC and other regulatory agencies. He also commended PETAN’s dedication to the project and urged them to assemble the necessary financial backing for its swift execution.

During his presentation, PETAN Chairman Engr. Wole Ogunsanya presented the Certificate of Incorporation of ABTAN Energy Ltd and described Abia’s crude as “sweet oil” based on API standards, making it highly suitable for refining. He urged the Governor to personally lead the courtesy visit to NUPLC to accelerate the approval process for re-entering the wells.

Engr. Ogunsanya projected that the investment would generate over $1 billion in revenue within the first five years of operations. He also praised Governor Otti’s infrastructural development efforts and his commitment to creating a business-friendly environment in Abia State.

The Abia State Commissioner for Petroleum, Prof. Joel Ogbonna, acknowledged the Governor’s unwavering support and noted that several investors have already expressed interest in the state’s petroleum and mineral resources sector.

Similarly, PETAN’s Publicity Secretary, Engr. Dr. Innocent Akuvue, lauded the Governor’s transparency and accountability in handling the project. He highlighted how, in other states, personal interests often hinder similar initiatives, but in Abia, the focus remains on the people’s welfare.

“We are fully committed to driving this process. The exciting part is that the government’s technical team is highly knowledgeable, making collaboration seamless,” Engr. Akuvue remarked.

The meeting was attended by several Commissioners and senior government officials who reaffirmed their commitment to seeing the project through to completion.

With Governor Otti spearheading efforts to unlock Abia’s oil potential, the state is poised to emerge as a key player in Nigeria’s energy sector, fostering economic growth and job creation for its people.