The Department of Petroleum Resources (DPR), has approved the construction of a one-million-barrel capacity onshore terminal at the Otakikpo marginal field in OML 11, being operated by Green Energy International Ltd. (GEIL).
Chairman of GEIL, Prof. Anthony Adegbulugbe, who disclosed this in Abuja, said issuance of the approval to construct (ATC) was sequel to the department’s review of the detailed engineering design for the Onshore Crude Oil Storage facility to be built in the proposed Industrial park in Ikuru Town, Andoni local government area of Rivers state.
According to him, the proposed Otakikpo Onshore Terminal will be the first indigenous Onshore Terminal and the first to be built in the country in the past five decades. Adegbulugbe noted that the construction of the proposed Terminal is expected to start soon by a consortium of internationally reputable EPC contractors.
He stated that the project was part of the development strategy to expand production and de-risk the evacuation of crude from the Otakikpo field, thereby reducing the cost of evacuation from the field. The Chairman equally said the proposed Terminal would be strategically located to also benefit several otherwise stranded oil fields in the Eastern Niger Delta axis by providing a commercially viable and operationally efficient access to the export market.
Adegbulugbe noted that the development of an Onshore Terminal is in synergy with the present administration’s plan to boost oil production while at the same time reducing cost of production.
The cost of evacuation using the Onshore Terminal will significantly reduce the export evacuation cost for oil production in the Otakikpo field and others nearby production fields,” he said. Adegbulugbe said the Terminal will provide employment for hundreds of people from the host community and link the upstream benefits to the local, state and national economy.
Speaking on the safety requirement of the regulators, the Chairman stated that safety considerations was a priority in the engineering design and that the Terminal equipment would be adequately selected and installed in a way to prevent equipment damage and environmental pollution. He promised that all the terminal operations staff will be adequately trained to ensure operations are managed effectively while complying with all HSE rules and regulations.