Nigeria has launched its first privately developed indigenous onshore crude export terminal in over 50 years, as Shell successfully loaded the maiden cargo from the $400 million Otakikpo terminal in Rivers State.
The milestone marks a major step forward for Nigeria’s oil infrastructure, as the facility — developed by Green Energy International Limited (GEIL) — begins full-scale operations with the Aframax tanker Lipari carrying the first crude shipment.
Located in the OML 11 block, southeast of Port Harcourt, the Otakikpo terminal boasts an initial storage capacity of 750,000 barrels, expandable to 3 million, and an export loading capacity of up to 360,000 barrels per day.
“This facility will ensure that the costs will drop by at least 40 per cent,” said Dr. Kayode Adegbulugbe, managing director of the Otakikpo Oil Terminal. “When oil is stored in tanks, it lowers the cost of production per barrel significantly.”
The terminal eliminates the need for the expensive barging system previously used, which cost approximately $120,000 daily. Crude from GEIL’s Otakikpo field — currently producing 10,000 barrels per day with plans to reach 30,000 — is piped 23 kilometers via a 20-inch pipeline to a Single Point Mooring in the Atlantic Ocean.
Beyond its own field, the Otakikpo terminal is designed to unlock production from over 40 nearby stranded fields, with estimated reserves of 3 billion barrels of oil equivalent. It can also receive up to 250,000 barrels per day from third-party producers via offshore infrastructure.
“This is a home-grown alternative,” Adegbulugbe added. “The operational expenditure is also set to reduce when crude is stored in tanks.”
The facility aligns with Nigeria’s national goal to increase oil production to over 2 million barrels per day, while revitalizing underdeveloped fields in the Ogoni and Opobo regions. GEIL is planning further expansion of the terminal’s storage and gathering systems, with capacity upgrades possible within nine months to meet rising demand.
Green Energy began injecting crude into the terminal on March 30. The Shell cargo loaded this week represents the beginning of a new era in Nigeria’s crude oil logistics, potentially boosting revenue and foreign investment.
“This development proves Nigeria remains attractive for investment in oil and gas,” said Adegbulugbe.
The Otakikpo terminal is expected to become a key export hub in the Niger Delta, positioning Nigeria for improved oil export efficiency and economic gains.
