By Obiabin Onukwugha
President Bola Tinubu has stated that the newly commissioned Otakikpo Crude Oil Export Terminal at Ikuru town, Andoni local government area of Rivers State, will ramp up the country’s crude oil production capacity.
The president, described the terminal built by an indigenous oil company, Green Energy International Limited (GEIL), as a new chapter for the country’s oil and gas industry, saying it will contribute to a secure, transparent and efficient evacuation as well as expanding Nigeria’s oil export critical infrastructure.
The President stated this while commissioning the Otakikpo Crude Oil Export Terminal at Ikuru town on Wednesday.
Tinubu, who was represented at the commissioning by the Minister of State, Petroleum (Oil), Heineken Lokpobiri, said the facility, which is the first indigenous onshore terminal in Nigeria, showcased the power of indigenous investment and local content initiative under the Petroleum Industry Act (PIA). He also said the project aligns directly with the core priorities of the Renewed Hope Agenda of his administration.
“This project showcases the power of indigenous investment and local content initiative under the PIA and the presidential directive 40 & 41 to compete globally. The Otakikpo terminal will not only serve GEIL’s production but will also open an efficient evacuation outlet for marginal and stranded fields across this region, unlocking billions of barrels of reserves and creating value for our economy.
“The project is also a shinning example of our expectation of licences. Having provided global competitive fiscals and incentives, our expectation and hope is that you will put fields to work so we can meet both our obligations.
“The Otakikpo terminal is therefore not just an infrastructure project; it is a signal of renewed confidence in Rivers State and the Niger Delta, that with peace and partnership, investments will flow, jobs will be created and prosperity will be shared,” he said.
The president commended GEIL for investing over $400 million in building the facility, asuring that the era of looking elsewhere for finance will soon be over. “We have discovered that the bigger challenge we have in Africa is access to finance. And that was why we’ve come up with African Energy Bank, which is ready to go. Nigeria as a host country has met its obligations. We have met all our obligations, legal, financial.
“We are waiting for the bank to take off, which I think will take off any moment from now. Once that is done, our target is to change the game so that we can mobilize local finances to invest in that bank targeted at creating the best value that we can create for our own people,” the president stated.
Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engineer Gbenga Komolafe, described GEIL as a full-fledged upstream company, saying the terminal expands Nigeria’s crude export infrastructure at a critical time and demonstrates the capacity of Nigerian operators to deliver world-class projects once thought possible only for international major players.
The NUPRC boss said that by creating an alternative export hub in Rivers State, the Otakikpo terminal reduces over-reliance on existing terminals, many of which are operating at near capacity and are exposed to security and pipeline challenges.
“It is indeed a landmark for us to celebrate in Nigeria. It is therefore historic on two levels. First it expands Nigeria’s crude export infrastructure at a critical time and demonstrates the capacity of Nigeria operators to deliver world class projects once thought possible only for international major players.
“The significance of this terminal is far reaching. First, it enhances Nigeria’s crude evacuation system with national production currently in the range of 1.7 to 1.8 million barrels per day the efficiency of evacuation and export is critical. By creating an alternative export hub in Rivers state, the Otakiko terminal reduces over reliance on existing terminals many of which are operating at a near capacity and are exposed to security and pipeline challenges.
“Also it is a benefit for indigenous producers. In the past Nigeria independence had to rely heavily on infrastructure owned by international oil companies often at high crude oil handling charges and transportation costs. In this situation we are all aspiring to reduce the unit cost per barrel,” he stated.
The chairman/CEO GEIL, Professor Anthony Adegbulugbe, commended President Tinubu for his support saying his (Tinubu) enabling policies and reforms under PIA, his clarity of vision for energy security and commitment to indigenous participation create the fertile ground for the project to flourish.
