The first major crude export facility constructed in Nigeria in more than 50 years, the $400 million Otakikpo Onshore Crude Oil Export Terminal in Rivers State, is set to be inaugurated by President Bola Tinubu on October 8.
The facility is the first entirely indigenous onshore terminal constructed in Nigeria. It was created by Green Energy International Limited, the operators of the Otakikpo field in OML 11, Ikuru town, Andoni Local Government Area of Rivers State. The Forcados Terminal, the final of these facilities, was put into service in 1971.
Top government officials, such as Senator Heineken Lokpobiri, the Minister of State for Petroleum (Oil), Rivers State Governor Siminalayi Fubara, and important players in the oil and gas industry are anticipated to attend the inauguration.
The terminal supports President Tinubu’s efforts to increase crude oil output and solve Nigeria’s long-standing evacuation issues, according to a statement signed on Thursday by Olusegun Ilori, Executive Director of Legal and Corporate Services at GEIL.
“The administration’s commitment to increasing output while cutting costs is supported by this project, which is a strategic infrastructure,” Ilori stated.
Operators in the industry have often pointed out that evacuation delays are a significant barrier to achieving the three million barrels per day output target set by the federal government.
By offering a dependable evacuation outlet, the Otakikpo terminal is anticipated to act as a lifeline to over 40 stranded oil fields, potentially releasing millions of barrels of previously trapped crude.
The facility is also expected to drastically lower production costs for domestic producers, with a loading capability of 360,000 barrels per day and an initial storage capacity of 750,000 barrels that can be expanded to three million barrels.
Professor Anthony Adegbulugbe, GEIL’s chairman and CEO, called the terminal a “game-changing national infrastructure.”
Adegbulugbe stated, “What we have accomplished here is not just a storage solution, but a roadmap for approximately 40 stranded oil fields to finally contribute to the economy.”
The ceremony highlights the Federal Government’s continued efforts to regain investor trust in Nigeria’s oil industry, which has recently faced challenges from dwindling output, pipeline vandalism, oil theft, and growing operating expenses.
