On October 8, President Bola Tinubu is set to officially open the Otakikpo Onshore Crude Oil Export Terminal in Rivers State, a groundbreaking $400 million project that represents Nigeria’s first new crude export terminal in over fifty years.
Developed by Green Energy International Limited (GEIL), the operators of the Otakikpo field located in OML 11 at Ikuru Town within Andoni Local Government Area, this terminal stands as Nigeria’s inaugural fully indigenous onshore crude export facility. The last terminal of this nature, the Forcados Terminal, was established back in 1971.
GEIL has announced that the inauguration event will host prominent figures such as the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, Rivers State Governor Siminalayi Fubara, alongside key industry players and regulatory authorities.
In a recent statement, Olusegun Ilori, GEIL’s Executive Director of Legal and Corporate Services, emphasized that the terminal’s development aligns with President Tinubu’s agenda to boost crude oil production and address persistent challenges related to oil evacuation.
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Ilori highlighted, “This infrastructure is a critical asset that underpins the government’s goal to increase output while optimizing operational expenses.”
For an extended period, evacuation difficulties have been identified by industry experts as a major barrier preventing Nigeria from achieving the Federal Government’s target of producing three million barrels of crude oil daily. The Otakikpo terminal aims to alleviate these issues by serving as a conduit for over 40 previously stranded oil fields, thereby unlocking access to millions of barrels of crude oil that were previously unreachable.
Initially, the terminal offers a storage capacity of 750,000 barrels, with plans to expand up to three million barrels, and it supports a loading rate of 360,000 barrels per day. This facility is also anticipated to lower production expenses significantly for local oil producers.
Professor Anthony Adegbulugbe, Chairman and CEO of GEIL, hailed the terminal as a transformative milestone for Nigeria’s energy landscape.
“This achievement goes beyond mere storage; it opens the door for approximately 40 stranded oil fields to actively contribute to the nation’s economy,” Adegbulugbe remarked.
The $400 million Otakikpo terminal emerges at a critical juncture when Nigeria’s oil sector faces challenges such as declining output, sabotage, crude theft, and escalating operational costs. Officials view the terminal’s commissioning as a clear indication of the Federal Government’s renewed commitment to revitalizing investor trust and positioning the oil industry as a cornerstone of economic development.
