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Home Oil and Gas

Oil Windfall: Anambra Reclaims Wells Lost in Boundary Dispute With Delta

by NewsNet Nigeria
6 months ago
in Oil and Gas
Oil Windfall: Anambra Reclaims Wells Lost in Boundary Dispute With Delta
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Anambra State says it has reclaimed about 10 oil wells in the Anambra River Basin that had for years been credited to Delta State following a long-running boundary dispute between the two states.

The development was disclosed in Awka on Thursday by Charles Ofoegbu, Managing Director of the Anambra State Solid Mineral Development Company and Chairman of Anambra State Petroleum Energy Resources Limited.

Ofoegbu said the oil wells belong to Anambra but had for years been recorded under Delta State because of unresolved territorial disagreements along their shared boundary.

He explained that the development followed a verification exercise carried out by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the federal body responsible for determining revenue allocation and derivation entitlements among oil-producing states.

According to him, Anambra was officially recognised as one of Nigeria’s oil-producing states in 2025, with an initial production capacity estimated at about 3,000 barrels of crude oil per day.

Ofoegbu said that once the commission’s verification report receives final approval, the state will begin to earn additional revenue from the oil wells located along its boundary with Delta State.

He noted that the clarification of ownership would strengthen the state’s revenue base through the 13 per cent oil derivation fund allocated to producing states by the Federal Government.

The official also disclosed that the state government is working with foreign investors to establish a modular refinery in Ossamala, located in Ogbaru Local Government Area.

According to him, the refinery will produce petroleum products and diesel for supply within Anambra and neighbouring states while also generating new streams of revenue for the state.

Ofoegbu further revealed that Anambra is pursuing claims to additional oil wells currently credited to neighbouring states including Imo State, Rivers State, Enugu State and Delta State due to similar boundary disagreements.

He said resolving the disputes could significantly increase the state’s share of the derivation revenue from the federal government.
Beyond petroleum resources, Ofoegbu disclosed that the state is also expanding activities in the solid minerals sector.

He said preparations are underway to open a kaolin mining site in Ukpor, while plans have been concluded for a bentonite processing plant at Achalagu in Nteje.

The facility, he said, will source raw materials from Umuchu and Ufuma.

Ofoegbu noted that bentonite, widely used in drilling operations within the oil industry, could become another important source of revenue for the state.

He added that proceeds from the oil sector have already supported several development initiatives of the administration of Governor Chukwuma Charles Soludo, including major projects such as Solution Fun City.

Ofoegbu described the recovery of the oil wells as a significant economic boost that would further strengthen the state’s finances and support ongoing development efforts.

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