The Petroleum Technology Association of Nigeria (PETAN) is planning to partner Governor Alex Otti on a Joint Venture (JV) model to own and operate upstream assets in Abia.

PETAN’s spokesman Innocent Akuvue disclosed this in a statement on Friday following PETAN’s official visit to Mr Otti.

PETAN’s chair, Wole Ogunsanya, 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 Abia.

Mr Ogunsanya explained that the joint venture would align with the Nigerian Upstream Petroleum Regulatory Commission’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, noting 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 and direct foreign currency earnings. Others are 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,” Mr Ogunsanya said.

In response, Mr 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 the oil industry’s upstream and downstream sectors.

The association aims to bring together Nigerian oil and gas entrepreneurs and create a forum for exchanging ideas with major operators and policymakers.

(NAN)