Abia Government Boosts Oil Production, Establishes SPV

The Abia State Government has announced significant strides in boosting the state’s oil production capacity and advancing its industrialization agenda with the establishment of a Special Purpose Vehicle (SPV) to drive the development of the state’s oil and gas sector.

Speaking at a press briefing on Tuesday, the Commissioner for Information, Prince Okey Kanu, revealed that the SPV, which holds 40 per cent equity, has partnered with the Petroleum Technology Association of Nigeria (PETAN), which owns 25 per cent, while the remaining 35 per cent will be taken up by private investors.

This initiative, he said, aims to activate over 100 capped oil wells in the state, enabling the production of both oil and gas. The developments will also support ongoing projects like the African Industrial Innovation Bank (AIIB) and the Modular Refinery Project at the Abia Industrial Innovation Park.

According to Kanu, HSI Engineering, the company managing the modular refinery project, has made significant progress. He noted that they have completed the Environmental and Social Impact Assessment (ESIA), finalized front-end engineering designs, and executed a crude oil supply and purchase agreement. The company is expected to commence refining operations before the end of the year.

Also speaking, the Commissioner for Petroleum and Mineral Resources, Prof. Joel Ogbonna, outlined the government’s broader plans for industrialization and economic development.

He disclosed that 1,933 hectares of land had been acquired to establish an agri-state industrial integration package aimed at leveraging the state’s oil and gas resources for fertilizer production, petrochemical facilities, and mineral refineries. He emphasized that compensation payments had been made to affected communities to ensure cooperation and seamless project execution.

Prof. Ogbonna also reported that the state’s crude oil production has increased from 310,000 barrels per day to 1,032,000 barrels per day. This growth, attributed to measures taken to prevent pipeline vandalism and theft, has significantly increased the state’s revenue from the federally allocated 13% oil derivation fund.

He further charged citizens to continue protecting oil pipelines and keep supporting efforts to protect vital infrastructure and foster sustainable growth for the state.

Abia Government Boosts Oil Production, Establishes SPV is first published on The Whistler Newspaper