Abia State is making a significant move to enhance its oil and gas production capacity by diving fully into the upstream petroleum sector. The state aims to leverage its status as an oil-producing region to stimulate economic growth.
In a key development, oil and gas operations in Ukwa West Local Government Area, previously managed by Shell Petroleum Development Company (SPDC), have been taken over by the Nigeria Petroleum Development Company (NPDC), a subsidiary of NNPCL. NPDC now operates OML 11 in Owaza, marking a new phase in Abia’s resource management strategy.
But the Abia Commissioner for Information, Prince Okey Kanu told journalists Tuesday, after a meeting of the State Executive Council, that the state intends to activate its uncapped oil wells.
The uncapped oils, estimated at 100 in number strand both Ukwa West and Ukwa East Local Governments, though production activities have been concentrated only at Owaza, Ukwa West.
To activate the capped oil wells, Kanu said that government has set up a special purpose vehicle(SPV) through which it would go into oil production thereby enhansing Abia’s status as an oil producing state.
He said that the SPV was set in partnership with the Petroleum Technology Association of Nigeria (PETAN) with Abia controlling 40 percent equity stake, PETAN 25 percent while 35 percent would be taken by other private investors.
“And when fully operational this would enable the state government to produce both gas and oil which of course would support the Abia Industrial and Innovation Park(AIIP) project,” Kanu said.