PETAN Proposes Joint Venture with Abia State for Upstream Asset Development

PETAN Proposes Upstream Asset Partnership to Abia State Government

The Petroleum Technology Association of Nigeria (PETAN) has proposed a partnership with the Abia State Government to own and operate upstream oil and gas assets within the state. The proposal was presented by PETAN Chairman, Mr. Wole Ogunsanya, during an official visit to Governor Alex Otti.

The suggested model is a Joint Venture (JV) between PETAN and the Abia State Government, aimed at identifying and developing potential upstream assets. PETAN has identified 53 existing wells and 105 capped wellheads in the state. The initiative is expected to be backed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under its marginal field scheme.

The economic benefits of this partnership for Abia State include increased internally generated revenue, foreign currency earnings, tax accruals, job creation, and support for the national directive to boost oil and gas production. Additionally, it aims to develop local content and engage a value-delivering consortium with proven in-country capacities.

Governor Otti welcomed the proposal and instructed his Commissioner for Petroleum and Mineral Resources to provide full support for its actualization. He also promised to liaise with the NUPRC for further backing.

The PETAN delegation included several executives and CEOs of member companies, emphasizing the experienced and capable consortium behind the proposal.

For more related news, visit the Nigerian Tribune.