Green Energy International Limited has completed an onshore crude oil export terminal at Otakikpo, Rivers State, aimed at reducing crude evacuation costs and addressing bottlenecks that hinder Nigeria’s crude oil production targets.

The Guardian reports that operators in the oil and gas sector have identified evacuation challenges as a major barrier to achieving the Federal Government’s goal of producing three million barrels of crude oil per day.

The newly unveiled terminal, with an initial storage capacity of 750,000 barrels expandable to three million barrels and a loading capacity of 360,000 barrels per day, is expected to support the government’s objective to produce 2.06 million barrels daily.

The facility is intended to lower the industry’s high production costs, which currently range between $25 and $40 per barrel in Nigeria, significantly higher than production costs in countries like Saudi Arabia, where it averages about $10 per barrel.

At the launch of the facility in Port Harcourt, Otakikpo Oil Terminal Managing Director Kayode Adegbulugbe described the terminal as a cost-saving solution, particularly beneficial to marginal field operators whose wells remain idle due to limited evacuation infrastructure.

He compared the savings to carpooling: “If you stay in Lagos and drive your own car to work every day, you spend more. But once you decide to carpool, you start saving. This is exactly what this facility brings to the market. It provides an option to store crude and eliminates evacuation challenges.”

Adegbulugbe added that the terminal will reduce capital and operational expenditures by allowing producers to store crude locally instead of depending on distant or costly floating production systems.

“The government needs to realise that instead of spending on multiple float stations, this facility offers a home-grown alternative. When oil is stored in tanks, it lowers the cost of production per barrel significantly. The operational expenditure is also set to reduce when they are stored in tanks, and the cost of production per barrel will reduce. This facility will ensure that the costs will drop by at least 40 per cent,” he said.

The project, developed over more than two years and delivered ahead of schedule, relied heavily on indigenous engineering with more than 90 per cent of contracts awarded to local contractors.

Board Chairman of Green Energy, Professor Anthony Adegbulugbe, said the terminal is the first onshore crude oil terminal built by an indigenous operator in Nigeria, noting its logistical advantages with access by truck, barge, sea, and pipeline.

“What we have achieved here is not just a storage solution, but a game-changing national infrastructure that has opened a new pathway for about 40 stranded oil fields to finally contribute to the economy,” he said.

He credited the King of Ikuru Town, the Okama of Ikuru, for mobilising local artisans who supported the civil works, and acknowledged the offshore technical expertise of West African Ventures, a Nigerian marine firm.

Professor Adegbulugbe also praised the local community and project partners for delivering the terminal under difficult conditions.

“The last 24 months have been tough. We laid pipes under adverse weather, with 24 to 25 days of delay at times while paying $250,000 per day in standby rates. Several barges sank. What was scheduled for 14 days took six months. But not once did our contractors back out. Together, we weathered the storm and delivered,” he said.

Following the launch, a facility tour was held for prospective clients, government officials, and members of the Independent Petroleum Producers Group (IPPG). The terminal is also expected to help reduce gas flaring in the region, contributing to Nigeria’s energy transition goals.

“We are local and we are flexible,” Adegbulugbe said. “No other terminal in Nigeria has this level of logistical access. This project shows what Nigerian companies can achieve with resilience and vision.”

IPPG Executive Coordinator Oyeleke Banmeke expressed support for the development, calling it a critical boost to Nigeria’s energy infrastructure.