The South East of Nigeria does not get a fair mention whenever the oil-producing parts of Nigeria are being discussed. This is because the oil-producing parts of the region, like Abia state, Imo state, and Anambra state, are still blossoming and are yet to be fully recognized as part of the goose that lays the golden egg for the Petro dollar economy of Nigeria.
Abia State’s oil status is often in contemplation. A popular search phrase on Google Nigeria reads “Is Abia State an Oil Producing State? Such innocent ignorance of Abia State’s Oil status stems from its relatively small landmass of approximately 6,320 square kilometres and its popularity as a manufacturing hub for Nigerian-made products only. These two factors contribute to the established brand of the state, making talks about oil production a stretch and even confusing to first-time hearers.
Is Abia State an Oil-Producing state?
Abia State is an oil-producing state contributing a significant quota to the total oil output of the nation. The state houses 57 active oil wells, usually generating approximately 60,000 barrels of crude Oil per day. Lately, the number has dropped to 11,000 barrels of crude per day, according to an Intelpoint report.
The Regions of Ukwa West, primarily Owaza and Ukwa East, make up 90% of the oil-producing regions of Abia state. Abia State Oil Producing Areas Development Commission (ASOPADEC), a state agency headed by Joshua Onyeike, manages and promotes development in the oil-producing areas of the state.
The Abia Industrial Park in Owaza focuses on a diverse range of sectors, including Oil and gas, registering as one of the critical economic clusters in the state. Other areas like Umunneochi also have significant Oil, adding to the state’s untapped oil reserves.
Oil Producing Infrastructure
Abia State has three flow stations: Imoturu (Ukwa West, producing 23,000 bpd), Isimili (Ukwa West, 8,000 bpd), and Obigo (Ukwa West).
An associated gas plant (Abia/NNPC) is also in Ukwa West. Over 100 oil wells, of which about 50 are operational, are primarily in Ukwa West and Ukwa East.
These three infrastructures power the small but significant oil production in the state.
Government Initiative
The Alex Otti administration has put in place a series of initiatives geared towards ramping up oil production and securing essential partnerships for the oil and gas sector in the state.
In 2023, Governor Alex Otti performed the groundbreaking ceremony of the 1000-hectare Abia Industrial and Innovation Park (AIIP) in Owaza. The park hosts modular refineries, petrochemical plants, fertilizer plants, and other industrial enterprises needed to run a robust oil operation in the state.
On Partnerships, the Otti administration last year discussed a possible collaboration with the Petroleum Technology Association of Nigeria (PETAN) to establish a joint venture oil refinery in the state. The Otti administration expressed interest in providing all the necessary support for the joint venture with PETAN, describing Abia state as a significant player in Nigeria’s oil sector.
Early this year, the Otti administration made a significant step towards protecting oil-producing communities by inaugurating the executive members of the Abia State chapter of the Oil and Gas Host Communities Committee in Umuahia.
The role of the committee is to ensure the environmental preservation of oil-producing communities in the state against oil spillage and other environmental hazards associated with oil exploration.
Abia State is among the oil states in southern Nigeria, putting the south-east on the national oil map.
Abia State’s oil operation, although small, is quite significant with vast growth potential, aided by government initiatives and partnerships.
