Pix of Abia State Commissioner for Information and information and Culture, Prince Okey Kanu
Abia floats oil firm with PETAN, begins oil, gas production soon
From Boniface Okoro, Umuahia
Abia State Government and the Petroleum Technology Association of Nigeria (PETAN) have jointly floated an oil company named ABTAN Energy Ltd. This would enable the state government to produce both gas and oil.
Abia State Commissioner for Information, Prince Okey Kanu, announced the birth of oil company while briefing Journalists on the outcome of this week’s State Executive Council (EXCO) meeting presided over by Governor Alex Otti.
Recall that Abia State government had early this year announced that it has established a Special Purpose Vehicle (SPV) to facilitate activation of over 100 capped oil wells in the state, a move that would lead to an increase of the state’s oil production capacity.
The Commissioner for Information who made the revelation had explained that government would hold 40 per cent equity in the SPV, with PETAN holding 25 per cent while the balance of 35 per cent would be taken up by private investors.
At Monday’ post-EXCO Press Briefing, Prince Kanu said with the intiative of establishing ABTAN, and the state’s owning of about 100 capped oil wells, Abia stated government would have direct access to participate in the oil industry as well as strengthen the business relationship between the State and PETAN.
“To consolidate the State Government’s efforts to jointly own an oil company, PETAN and the State Government have incorporated and floated an SPV called ABTAN ENERGY LTD,” Kanu announced.
“If you recall, not too long ago, we reported that there was an agreement between the state government and PETAN. Now, that move has gone a step further with the floating of this SPV that is meant to consolidate the business relationship between the state government and PETAN.
“Of course we’re all aware that the state has about a 100 capped oil wells and the way to go is to ensure that the state partakes in that industry,” he explained.
The Commissioner also told journalists that the State’s Ministry of Petroleum and Mineral Resources has initiated an extensive field study to assess the solid mineral sector.
The study, he said, “aims to determine the commercial viability and quantify critical mineral deposits across the State.”
According to the Commissioner, Abia State possesses about 18 different mineral resources, stressing that establishing the commercial potential of the minerals would enable the development of industries in areas where the deposits are available in significant quantities.
“The Ministry of Petroleum and Mineral Resources has commenced a state-wide field study of the solid mineral sector to determine the commercial viability and quantity of critical Minerals in the State. We have quite lots of them, about 18.
“What this study intends to achieve is to determine their quantity so that relevant industries will be set up in areas where these minerals are in commercial quantity,” Kanu said.
