By Christie U. Omonigho
Shell said it has successfully loaded the inaugural crude cargo from Nigeria’s new onshore Otakikpo terminal, signifying take-off of exports from the $400 million facility developed by Green Energy International, a marginal field operator according to Shell.
Key highlights:
- The loading of the first crude cargo according to Shell marks the beginning of commercial operations at the Otakikpo terminal;
- $400m Investment: The facility represents a substantial investment in Nigeria’s oil and gas sector, underscoring the potential for growth and development in the industry;
- Otakikpo terminal will boost production and will contribute to Nigeria’s crude oil production and exports, generating revenue and creating economic opportunities;
- The development of the terminal brought to the fore Nigeria’s attractiveness to investors and the potential for oil and gas development.
The terminal which is located in the OML 11 block southeast of Port Harcourt has a maximum export capacity of 360,000 barrels per day. Energy Window International (Media) gathered that the crude was piped 23km via a 20-inch line to a single point mooring in the Atlantic where a 21m draught allows Aframax and Suezmax tankers to load.
Green Energy said the terminal replaces a costly barging system that previously cost around $120,000 per day to evacuate production. It said this will reduce the industry’s soaring crude oil production costs which are poised to drop by at least 40 per cent.
“The government needs to realize 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,” Kayode Adegbulugbe, Managing Director of the Otakikpo Oil Terminal was quoted to have said in a statement.
The company had earlier exported its light sweet Otakikpo crude via the Ima floating storage unit operated by local firm Amni.
The new facility could unlock stranded output from more than 40 nearby fields with a combined capacity of 200,000 b/d and estimated reserves of 3bn barrels of oil equivalent, Green Energy was reported. The terminal can receive up to 250,000 b/d from third-party producers, including via a 6-inch, 6km offshore pipeline, the company said.
Energy Window International (Media) has learnt as well that Green Energy already plannned to develop a gathering system for crude from other producers and expand storage capacity to as much as 3mn bbls, up from 750,000 bbls currently. It told members of the Independent Petroleum Producers Group that it could add tank storage within nine months if demand rises. Current utilization has been below 12pc.
Recalling that Green Energy started injecting crude into the terminal in March while Shell loaded the first cargo aboard the Aframax tanker Lipari.
Meanwhile crude output from Green Energy in April Energy Window International also learnt was 5,000 b/d on the average, however it has secured regulatory approval to raise production to 30,000 b/d under a revised field development plan, according to upstream regulator NUPRC.”