Otu seeks equity participation as Clinton Oil mobilises drilling equipment
Cross River State Government is considering direct investment and equity participation in the Ikang onshore oil project as the state moves to secure a financial stake in its anticipated entry into crude oil production in the first quarter of 2027.
Governor Bassey Otu made the move known when he received the Board of Clinton Oilfield Ltd., operator of the Ikang petroleum asset, at Government House, Calabar, on November 5, 2026.
The proposed government participation signals a shift in the state’s approach to its emerging petroleum industry, from positioning itself as an oil-producing territory to actively seeking investment opportunities and economic returns from the development of its resources.
Otu, who welcomed the company’s operational update, urged Clinton Oil to designate the Ikang asset as an Investment Priority and deepen its engagement with the state government. He also pledged government support towards creating a conducive investment environment for the project.
Clinton Oil’s Chief Executive Officer, Goodluck Kpaniku, led the delegation, which briefed the governor on its financial commitments, operational preparations and development schedule.
The company, which emerged among the successful bidders in the 2026 Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Licensing Round, has reportedly completed preliminary seismic data analysis and pre-exploration activities.
It has also commenced mobilisation of critical operational infrastructure, including multiple drilling rigs, with first crude oil production projected for the first quarter of 2027.
Clinton Oil became the first successful bidder in the licensing round to pay its signature bonus, while Saratoga and Nikalista Oil Companies are also expected to complete their payments and proceed with preparations for their respective petroleum interests.
The Ikang development, located within the Calabar Geological Flank of the Niger Delta Basin, is expected to open new opportunities for Cross River in oil and gas production, industrial development, employment generation and revenue expansion.
Providing the broader context for the state’s growing petroleum prospects, Vice Chairman of the Cross River Economic Intelligence Team (CREIT), Rt. Hon. John Gaul Lebo, outlined the administration’s efforts to establish the state’s petroleum and maritime credentials through technical research and strategic engagements.
He recalled that Otu commissioned a comprehensive audit of the state’s petroleum and energy assets in 2025, involving Wood Mackenzie and Global Energy Monitor, among other technical institutions.
According to him, the findings were submitted to the governor and subsequently transmitted to President Bola Tinubu, providing technical backing for Cross River’s renewed engagement with the federal petroleum regulatory authorities.
Lebo said the process contributed to the identification and listing of the first 23 Calabar 1 and related petroleum assets by NUPRC, including the Ikang Mangrove Oil Field now being developed by Clinton Oil.
He also highlighted the state’s efforts towards strengthening its maritime interests, including the governor’s 2023 advocacy for the demarcation of Nigeria’s international maritime boundary.
The initiative, he said, reinforced Nigeria’s maritime jurisdiction over the Calabar International Navigational Channel and supported the transition from the historical British Admiralty charting framework to Nigeria’s national hydrographic charting system.
Lebo further referenced the recognition of approximately 7,600 hectares of maritime waters within the Cross River Estuary and technical work relating to Nigeria’s extended continental shelf interests, including its 16,300-square-kilometre claim.
He said the 2026 licensing round had opened additional prospects for the state, particularly with the expected development of the Odukpani EKI-01 area by Saratoga and the Ikoneto Calabar 2 field by Nikalista.
The Clinton Oil delegation included the company’s General Counsel, Kelvin Evhojie; Chief Operating Officer, Omagbemi Kakayor; and Liaison Officer, Ulang Adie.
Also present at the meeting were the governor’s Chief of Staff, Chief Emmanuel Ironbar, and a member of CREIT, Dr William Etim-Bassey.
For Cross River, the significance of the Ikang project now extends beyond the prospect of recording its first onshore crude oil production. The state’s proposed equity participation raises the possibility of securing direct economic benefits from the emerging petroleum industry, provided the investment arrangements and production targets are realised.
Source: Cross River Economic Intelligence Team (CREIT).
