Shell Makes History with First Crude Loading from Nigeria’s Game-Changing $400M Otakikpo Terminal
In a groundbreaking development that could reshape Nigeria’s oil export landscape, Shell has successfully loaded the first crude cargo from the newly commissioned Otakikpo terminal, marking the dawn of a new era for the country’s onshore oil operations.
The $400 million facility, developed by marginal field operator Green Energy International, represents a monumental shift in Nigeria’s oil infrastructure. Located in the OML 11 block southeast of Port Harcourt, this state-of-the-art terminal boasts a staggering maximum export capacity of 360,000 barrels per day.
The terminal’s strategic design features a 23-kilometer pipeline connected to a single point mooring system in the Atlantic, capable of accommodating Aframax and Suezmax tankers with its 21-meter draught capacity. This sophisticated setup replaces the previously costly barging system that was draining approximately $120,000 per day from production operations.
“The government needs to realize that instead of spending on multiple float stations, this facility offers a home-grown alternative,” declared Kayode Adegbulugbe, Managing Director of the Otakikpo Oil Terminal. “This facility will ensure that costs will drop by at least 40 percent.”
The implications extend far beyond cost savings. Green Energy anticipates that this terminal could unlock stranded output from more than 40 nearby fields, collectively holding a capacity of 200,000 barrels per day and estimated reserves of 3 billion barrels of oil equivalent.
Shell’s loading of the first cargo aboard the Aframax tanker Lipari on Monday signals the beginning of what industry experts are calling a transformation in Nigeria’s oil sector efficiency and competitiveness.
Source: punchng.com