Lauds GEIL over $400 million indigenous
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has said that Nigeria did not build a new crude oil export terminal for over half a century until the completion of the Otakikpo Onshore Terminal in Rivers State. Komolafe described the terminal as a historic milestone in the country’s energy sector.
Speaking at the official commissioning of the $400 million facility on Wednesday, Komolafe said the project marks a major turning point in Nigeria’s oil industry, demonstrating the capability of indigenous operators to execute large-scale, world-class infrastructure once dominated by international oil companies.
Komolafe said: “For over half a century, no new crude export land terminal has been added to Nigeria’s map. Our shore-based export arteries have remained the same, even as production grew and indigenous companies rose to prominence. The commissioning of the Otakikpo Terminal today is therefore a landmark achievement for us to celebrate as Nigerians.”
The last major terminals, he recalled, were constructed between the 1960s and 1970s by multinational companies such as Shell, Chevron, BP, and Agip.
These include the Bonny Terminal commissioned in 1961 by Shell-BP, the Escravos Terminal built by Chevron in 1968, and the Forcados, Qua Iboe and Brass terminals established in the 1970s.
Komolafe said the new terminal, built and operated by Green Energy International Limited, has an initial capacity of 750,000 barrels and is expandable to three million barrels of crude oil per day.
Beyond its technical scope, he said, it represents “a new chapter in the annals of the Nigerian petroleum industry.”
According to the NUPRC boss, the Otakikpo Terminal enhances Nigeria’s crude evacuation system at a time when production hovers between 1.7 and 1.8 million barrels per day.
He stressed that efficient evacuation and export are critical to achieving the national target of 2.5 million barrels per day, as set by the Federal Government.
“By creating an alternative export hub in Rivers State, the Otakikpo Terminal reduces over-reliance on existing terminals, many of which are already at or near capacity and exposed to security and pipeline challenges.
“It also benefits indigenous producers who often face high handling and transportation costs. The rise of such terminals will change that dynamic and give local companies direct control over evacuation,” he said.
He added that the terminal would support the country’s broader drive to lower production costs per barrel while improving competitiveness and sustainability in the upstream sector.
Located in Ikuru Town in Andoni Local Government Area, the terminal is expected to have a lasting impact on local development. Komolafe said the project goes beyond oil export, serving as a “community anchor” that will stimulate ancillary sectors such as logistics, catering, security, and other services that benefit the host communities.
“In doing so, it strengthens the social contract between Green Energy International Limited and its host communities,” he said, commending the company’s commitment to local participation and inclusive growth.
Komolafe highlighted that Nigeria’s oil and gas industry has undergone a “quiet revolution,” with indigenous producers now accounting for over 30 per cent of national output.
“Once dominated by international oil companies, the sector now draws its strength from Nigerian entrepreneurs who have taken over onshore and shallow-water assets, funded reserves, and boosted production,” he said.
Komolafe said the project aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises increased oil production, reduction of leakages, and strengthening of critical infrastructure as key pillars of economic recovery.
“Under the Petroleum Industry Act 2021, the NUPRC has translated reform into action through transparent licensing rounds, stronger indigenous participation, support for new export and midstream infrastructure, and a clear focus on community value,” Komolafe explained.
He maintained that the successful execution of the terminal reflects how “bold reforms, coupled with visionary execution, can reshape Nigeria’s energy landscape,” strengthening foreign exchange reserves and reducing the economy’s vulnerability to single-point disruptions.
