Nigeria has commenced crude oil exports from the newly developed Otakikpo onshore terminal, marking a significant milestone in the nation’s energy sector. The facility, valued at a projected $1.3 billion, is the first indigenous onshore crude export terminal to be developed in over five decades since Nigeria began oil production.
The terminal, established by Green Energy International Limited (GEIL), aims to serve as a decentralized hub for oil and gas exports. It is also designed to support the revival of over 40 previously stranded oil fields, positioning itself as a strategic asset in addressing Nigeria’s ongoing production challenges.
The inaugural export was successfully executed by an off-take vessel operated by Shell, the MV Vessel Name, signaling the operational readiness of the terminal. GEIL confirmed the development in a corporate statement, noting that the launch represents the culmination of rigorous planning and execution.
Nigeria has long grappled with inadequate oil infrastructure, which has hampered production and made crude evacuation both difficult and costly. In some cases, the cost of producing a barrel of oil in Nigeria can reach as high as $48. The Otakikpo terminal offers a practical alternative to traditional export routes, potentially lowering costs and improving efficiency.
During a visit to the facility, attended by other industry stakeholders, GEIL Chairman Prof. Anthony Adegbulugbe lauded the achievement as a testament to perseverance and local expertise. He credited the success to the resilience of the company’s fully indigenous workforce and the support of regulatory bodies.
Constructed with an initial investment of over $400 million, the terminal was completed in under two years—well ahead of schedule. It currently boasts a storage capacity of 750,000 barrels, with expansion plans set to increase this to three million barrels.
The launch of the Otakikpo terminal signals a transformative moment in Nigeria’s oil and gas sector, offering a new path toward improved production, reduced costs, and enhanced export capacity.
