Professor Anthony Adegbulugbe, Chairman of Green Energy International Limited (GEIL), has revealed that the company’s pioneering $400 million indigenous onshore Otakikpo Terminal in Rivers State is set to transform Nigeria’s oil and gas sector.
In an exclusive discussion with journalists in Abuja, the GEIL CEO emphasized that the Otakikpo Terminal represents a long-awaited breakthrough after five decades of dependence on foreign-built export facilities. He highlighted that this project, realized through two years of dedicated investment, is poised to redefine industry standards and expectations.
The terminal’s official commissioning is anticipated soon, with President Bola Tinubu expected to preside over the inauguration.
Describing the terminal’s distinctiveness, Adegbulugbe explained, “Our existing export infrastructure is aging and has constrained Nigeria’s oil production capacity. The Otakikpo Terminal introduces a modern, modular storage facility with an initial capacity of 750,000 barrels, expandable up to 3 million barrels, developed in collaboration with key stakeholders to ensure ongoing success.”
He further outlined that the terminal is designed to serve four categories of investors, thereby stimulating growth within the oil industry.
“Firstly, there are companies with smaller reserves located far from existing export pipelines, unable to justify the cost of building their own. For them, we offer a trucking solution, allowing transport of 1,000 to 1,500 barrels to our terminal via a well-maintained road network within approximately 50 kilometers,” he said.
“Secondly, operators with fields situated in creek areas, where trucking is impractical, can utilize barging. These producers can transport their crude to a designated point known as kilometre 6, where a bi-directional pipeline connects offshore fields directly to our terminal, enabling efficient onshore pumping and export.”
“The third group includes companies with offshore fields about 20 kilometers out. Many lack the capital to build export facilities, so we provide a 23-kilometer bi-directional offshore pipeline. They can use smaller vessels to deliver crude to kilometre 23, from where it is pumped onshore for export.”
“Lastly, producers within a 40-kilometer radius face significant losses due to theft, often receiving only 80% of their output value. Our terminal offers a secure alternative, ensuring full payment for their production.”
On safety measures, Adegbulugbe noted, “Our pipelines are engineered as three-phase, multi-purpose conduits capable of transporting oil, water, and gas. Gas transport through these pipelines is less vulnerable to vandalism, providing a reliable and secure solution. This guarantees that producers delivering crude to our terminal receive full compensation for their output.”
Historically, Nigeria has operated five major onshore crude oil terminals, each with a capacity of 300,000 barrels per day, facilitating seaborne exports. These include the Bonny terminal (originally built by Shell, now managed by Renaissance Africa Energy Limited), Qua Iboe (Mobil Producing, now Seplat Energy), Brass Oil River Terminal (Nigerian Agip, now Oando), Forcados (Shell, now Renaissance Africa Energy Limited), and Escravos (Chevron).
These facilities, constructed over 50 years ago by multinational corporations, handle approximately half of Nigeria’s crude oil condensate exports. They were primarily designed to serve the fields operated by their original builders.
In this context, GEIL’s Otakikpo Terminal emerges as a landmark development, marking a shift towards indigenous ownership and control of critical export infrastructure.
The Otakikpo Terminal features an initial storage capacity of 750,000 barrels, with plans to expand to 3 million barrels, and a pumping capacity of 360,000 barrels per day for loading export tankers. This makes it one of the most significant infrastructure projects in Nigeria’s energy sector.
Completed ahead of schedule in under two years, the terminal is the first crude oil export facility developed privately by an African operator. With an initial investment surpassing $400 million and a projected full-phase cost of $1.3 billion, GEIL demonstrates a strong commitment to enhancing Nigeria’s oil export capabilities.
The terminal is designed to handle up to 250,000 barrels per day of crude injection, while the Otakikpo field itself currently produces about 10,000 barrels daily.
Importantly, the facility opens new avenues for third-party producers, especially those managing over 40 nearby stranded fields containing more than 3 billion barrels of oil equivalent (BOE).
Beyond unlocking stranded reserves, the terminal’s strategic location near the Ogoni fields aligns with President Tinubu’s administration’s goal to rejuvenate the Ogoni and Opobo oil fields, which have been underexploited for over three decades.
By providing cost-effective evacuation options for these assets, GEIL’s infrastructure is positioned to boost Nigeria’s oil production and export volumes significantly.
As Nigeria advances its oil infrastructure modernization, the completion of the Otakikpo Terminal underscores the nation’s capacity for innovative energy solutions, promising sustainable growth and enhanced industry resilience for years to come.
