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HOW GREEN ENERGY INT’L LTD’S $400M CRUDE TERMINAL WILL IMPACT NIGERIA’S ENERGY SECTOR -ADEGBULUGBE
…Full-phase Project Development After 50 Years Of Relying On the Ones Built By Foreigners To Cost $1.3bn
The Chairman of Green Energy International Limited (GEIL), Prof. Anthony Adegbulugbe, has disclosed that the firm’s establishment of the first indigenous $400 million onshore oil Otakikpo Terminal in Rivers State will play significant roles in the oil and gas industry in Nigeria.
According to the Chief Executive Officer of GEIL, the Otakikpo Terminal is a project whose time has come, saying that the terminal is a product of two-year investment after 50 years of relying on the ones built by foreigners.
Adegbulugbe stated this during an interview with select journalists in Abuja at the weekend, adding that the terminal will live up to expectations and change the narrative in the oil and gas industry.
With the completion of the terminal, President Bola Tinubu is expected to inaugurate the facility in due course.
Speaking on the uniqueness of Otakikpo Terminal, the Green Energy chief said: “The whole idea is a project whose time has come. Because, right now, we have an aging network of export infrastructure that has been a limiting factor to the production of oil in Nigeria.
“We have put in place a modular facility of 750,000 barrels storage capacity that is expandable to 3,000,000 barrels and we are working with relevant stakeholders to keep recording successes”.
Adegbulugbe further disclosed that the terminal will cater for four sets of investors for positive development of the oil sector.
He said: “The Otakikpo terminal which is the newest is catering for four sets of E&P companies. The first set are those who have small reserves far away from oil export infrastructure pipeline and they can’t afford to build a pipeline because of the small reserves
“This time around, they have a solution through the trucking option. That is, they can truck 1,000-1,500 barrels into our terminal. Getting to the terminal, we have a very good road network. So, if you are around 50 kilometres or thereabouts, you can come to Otakikpo terminal.
“Then, another set of companies have fields around creeks where they can’t do any trucking but they can do barging. Again, we cater for those in that category. They can barge or even aggregate and come to where we call kilometre 6 because we already have a pipeline from our field to 6 kilometers offshore and it is a bi-directional, which we are using right now for our export as we can turn it around”.
“You can bring your barge to kilometer 6, pump your oil onshore and from onshore it goes directly into our terminal. So that again gives succour to those fields and there are so many of them. The third set of investors are those who have fields 20 kilometers offshore. One of the mitigating factors for them for exporting is that they may not have enough capital to facilitate the required facility. Again, we have a 23-kilometre bi-directional pipeline offshore”.
“They can have a smaller vessel, produce and come to kilometer 23 and pump again onshore and they can export. The fourth set are the companies within 40 kilometres from us. Even if they have enough money for the required infrastructure, there is an issue of theft. They produce hundred barrels and get paid sometimes about 80 per cent with 20 per cent loss and that is imparting on their bottom line. Again, we offer a solution”.
On the strategies put in place to ensure safety, the GEIL boss disclosed that the pipelines are designed to be in three-phase as part of strategies to ensure safety,
He said: “All the pipelines coming to us are designed to be three-phase. Multipurpose solution. That is, you give us your oil, give us water, give us your gas. With gas in that pipeline, it is relatively safe from pipeline vandalism. So we offer that solution”.
“So you are sure that if you bring your one hundred barrels to our terminal, you can get paid for 100 barrels. This is the kind of option we are bringing to the table”.
Until the end of March 2025, Nigeria had five large-sized onshore crude oil terminals, each with capacity to pump 300,000 barrels of oil per day into seaborne export transportation units.
The terminals include: The Bonny terminal built by Shell Petroleum and now operated by Renaissance Africa Energy Limited, Qua Iboe terminal built by Mobil Producing and now operated by Seplat Energy, Brass Oil River Terminal built by Nigerian Agip now operated by Oando, Forcados terminal built by Shell Petroleum now operated by Renaissance Africa Energy Limited and Escravos terminal built and operated by Chevron.
It was learnt that they were built by multi-nationals over 50 years ago to receive crude from fields operated by these firms and export them to foreign markets.
With an initial investment exceeding $400 million and a full-phase development projection of $1.3 billion, GEIL said its commitment to expanding Nigeria’s oil export infrastructure is evident.
Credit: This Day
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