One-million-barrel capacity onshore terminal project in Nigeria approved


CONSTRUCTION of a one-million-barrel capacity onshore terminal in Nigeria has been approved by the Department of Petroleum Resources (DPR).

According to the Chairman of Green Energy International Ltd. (GEIL), Anthony Adegbulugbe, the issuance of the Approval to Construct (ATC) was the result of the department’s review of the detailed engineering design for the Onshore Crude Oil Storage facility to be built in the proposed Industrial park in Ikuru Town, Andoni local government area of Rivers state.

First indigenous Onshore Terminal

The proposed Otakikpo Onshore Terminal located at the Otakikpo marginal field in OML 11, will be the first indigenous Onshore Terminal and the first to be built in the country in the past five decades. Adegbulugbe noted that the construction of the proposed Terminal is expected to start soon by a consortium of internationally reputable EPC contractors.

The project is part of the development strategy to expand production and de-risk the evacuation of crude from the Otakikpo field, thereby reducing the cost of evacuation from the field.

‘The development of an Onshore Terminal is in synergy with the present administration’s plan to boost oil production while at the same time reducing cost of production,’ said Anthony.

Access to the export market

The terminal, according to Anthony, would be strategically located to also benefit several otherwise stranded oil fields in the Eastern Niger Delta axis by providing a commercially viable and operationally efficient access to the export market.

The terminal equipment would be adequately selected and installed in a way to prevent equipment damage and environmental pollution as part of safety considerations. Operation staff will additionally receive adequate training to ensure operations are managed effectively while complying with all HSE rules and regulations.

‘The cost of evacuation using the Onshore Terminal will significantly reduce the export evacuation cost for oil production in the Otakikpo field and others nearby production fields,’ Anthony said. ‘The Terminal will also provide employment to hundreds of people from the host community and link the upstream benefits to the local, state and national economy,’ he added.


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