President Bola Tinubu is set to inaugurate the $400 million Otakikpo Onshore Crude Oil Export Terminal in Rivers State on October 8. This marks the first new crude oil export facility built in Nigeria in over fifty years.
The terminal was constructed by Green Energy International Limited, which manages the Otakikpo oil field located in Ikuru, a town in Rivers State. This new terminal is unique as it is Nigeria’s first entirely local facility for exporting oil from land. The previous facility of this kind, known as the Forcados Terminal, was inaugurated in 1971.
The opening event is expected to draw important government figures, including the Minister of State for Petroleum, Senator Heineken Lokpobiri, and Rivers State Governor, Siminalayi Fubara, as well as key players in the oil and gas industry. Olusegun Ilori, the Executive Director of Legal and Corporate Services for Green Energy International, stated that the terminal will support President Tinubu’s plan to increase crude oil production and tackle challenges the country faces in moving oil from where it is produced.
Ilori pointed out that this initiative is vital for helping the government reach its goal of boosting oil production while keeping costs down. The industry has often mentioned evacuation issues as a major hurdle in achieving the government’s target of producing three million barrels of oil each day. The Otakikpo terminal is expected to play a key role in tackling these challenges by providing a dependable way to transport oil, potentially releasing millions of barrels that have been stuck underground.
A new oil facility has been built with a starting storage capacity of 750,000 barrels, which can be expanded to hold up to three million barrels. It also has the ability to load 360,000 barrels each day. This facility is expected to help local oil producers save money on production costs significantly.
Professor Anthony Adegbulugbe, who leads GEIL, praised the terminal, calling it a “transformative national infrastructure.” He explained that this facility is not just about storing oil; it will allow around 40 trapped oil fields to finally contribute to the economy.
The launch of this facility highlights the Nigerian government’s commitment to restoring investor confidence in the oil industry. Recently, the sector has faced several challenges, including falling production levels, vandalism of pipelines, oil theft, and increasing operating expenses.
