Shell has successfully loaded the first crude oil cargo from Nigeria’s new $400 million Otakikpo onshore terminal, marking the commencement of exports from the facility developed by indigenous marginal field operator Green Energy International Limited (GEIL).
Located in the OML 11 block southeast of Port Harcourt, Rivers State, the Otakikpo terminal is Nigeria’s first privately developed onshore crude export terminal in over five decades. The facility boasts an initial storage capacity of 750,000 barrels, expandable to 3 million barrels, and a maximum export loading capacity of 360,000 barrels per day.
Shell loaded the first cargo aboard the Aframax tanker Lipari, signaling a new era for Nigeria’s oil logistics and strengthening the country’s position in the global energy market.
The terminal replaces a costly barging system that previously cost around $120,000 daily to evacuate production, and is expected to reduce crude oil production costs by at least 40 per cent.
“The government needs to realise that instead of spending on multiple float stations, this facility offers a home-grown alternative. When oil is stored in tanks, it lowers the cost of production per barrel significantly.
“The operational expenditure is also set to reduce when they are stored in tanks, and the cost of production per barrel will reduce. This facility will ensure that the costs will drop by at least 40 per cent,” the managing director of the Otakikpo Oil Terminal, Kayode Adegbulugbe, said.
Crude is piped 23 kilometers via a 20-inch pipeline to a single point mooring in the Atlantic Ocean, where Aframax and Suezmax tankers can load.
Beyond serving Green Energy’s own Otakikpo field, which currently produces about 10,000 barrels per day with plans to increase to 30,000 b/d, the terminal is poised to unlock stranded output from over 40 nearby fields with combined reserves estimated at 3 billion barrels of oil equivalent.
It can also receive up to 250,000 b/d from third-party producers via an offshore pipeline.
The facility aligns with the Nigerian government’s objective to boost crude oil production to over 2 million barrels per day and supports efforts to revitalise underdeveloped oil fields in the Ogoni and Opobo regions.
The Otakikpo terminal is expected to contribute to Nigeria’s crude oil production and exports, generating revenue and creating economic opportunities.
The development of the terminal highlights Nigeria’s attractiveness to investors and its potential for oil and gas development.
This milestone underscores the importance of the Otakikpo terminal in Nigeria’s oil and gas landscape and its potential to drive economic growth
The new facility could unlock stranded output from more than 40 nearby fields with a combined capacity of 200,000 b/d and estimated reserves of 3bn barrels of oil equivalent, according to Green Energy. The terminal can receive up to 250,000 b/d from third-party producers, including via a 6-inch, 6km offshore pipeline, the firm said.
Green Energy plans to develop a gathering system for crude from other producers and expand storage capacity to as much as 3mn bl, up from 750,000 bl currently. It told members of the Independent Petroleum Producers Group last week that it can add tank storage within nine months if demand rises. Current utilisation remains below 12pc.
Green Energy began injecting crude into the terminal on 30 March. Shell loaded the first cargo aboard the Aframax tanker Lipari.
