President Bola Tinubu is expected to commission the $400 million Otakikpo Onshore Crude Oil Terminal in Rivers State. The unveiling is of monumental significance as it is the first new crude export facility to be built in Nigeria in over 50 years. The facility was developed by Green Energy International Limited, who also operate the Otakikpo field in OML 11. The onshore crude oil terminal is the first wholly indigenous onshore terminal to be built in Nigeria. The last such facility, the Forcados Terminal, was commissioned in 1971. The inauguration is expected to attract top government officials such as the Minister of State for Petroleum (Oil). It will also have Senator Heineken Lokpobiri, Rivers State Governor, Siminalayi Fubara, and key stakeholders across the oil and gas sector. The terminal aligns with President Tinubu’s drive to boost crude oil production and address Nigeria’s long-standing evacuation challenges.
The Significance of the Otakikpo Onshore Crude Oil Terminal in Nigeria
The Otakikpo Onshore Crude Oil Terminal is expected to serve as a lifeline to more than 40 stranded oil fields. The facility is expected to provide a reliable evacuation outlet which will potentially unlock millions of barrels of crude previously trapped underground. Moreover, the plant has an initial storage capacity of 750,000 barrels which is expandable to three million barrels. It also has a loading capacity of 360,000 barrels per day. The facility is also projected to reduce production costs for indigenous producers significantly. Chairman and Chief Executive of GEIL, Professor Anthony Adegbulugbe, described the terminal as a “game-changing national infrastructure.”
“What we have achieved here is not just a storage solution, but a pathway for about 40 stranded oil fields to finally contribute to the economy,” Adegbulugbe said. The commissioning of the plant highlights the Federal Government’s renewed efforts to restore investor confidence in Nigeria’s energy sector. Firms such as TotalEnergies have shown interest in Nigeria’s energy potential. The fim has been handed out permits to explore oilfields in Nigeria-TotalEnergies deepwater oil contract. The country has struggled with declining production, pipeline vandalism, oil theft, and rising operational costs in recent years.
