The Petroleum Technology Association of Nigeria (PETAN) is planning to partner with the Abia State Government on a Joint Venture (JV) model to own and operate upstream assets in the state.
Dr Innocent Akuvue, Publicity Secretary of PETAN, disclosed this in a statement on Friday in Lagos following PETAN’s official visit to Abia State Governor, Dr Alex Otti.
Mr Wole Ogunsanya, Chairman of PETAN, presented the proposal to the governor, suggesting a joint venture between PETAN and the Abia Government.
According to him, the partnership aims to identify and develop potential upstream assets in the state.
Ogunsanya explained that the joint venture would align with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)’s support for securing assets under its marginal field scheme.
The chairman noted that PETAN would leverage its capacities and capabilities to develop these assets to first oil.
He noted that PETAN had identified 53 existing wells and 105 capped wellheads within Abia.
“The economic benefits of our value proposition to Abia State, Your Excellency, include major internally generated revenue (IGR) and direct foreign currency earnings.
“Others tax accruals, employment generation, and support of the Presidential Directive to increase oil and gas production in the country.
“This will also develop local content through the active engagement of a value-delivering consortium, patronising existing in-country entities with the capabilities to deliver cost-effective management strategies,” Ogunsanya said.
In response, Governor Otti welcomed the proposal and instructed his Commissioner for Petroleum and Mineral Resources to provide maximum support to PETAN to ensure the project’s realisation.
He also promised to liaise with the NUPRC to lend his support.
PETAN is an association of Nigerian indigenous technical oilfield service companies operating in both the upstream and downstream sectors of the oil industry.
The association aims to bring together Nigerian oil and gas entrepreneurs to create a forum for the exchange of ideas with major operators and policymakers.