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.
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.
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.
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