GEIL Launches New Onshore Terminal in Nigeria

  • GEIL commissioned the Otakikpo terminal in June 2025, enabling crude exports and cutting transport costs by 40%.
  • The facility supports marginal field output and offers 750,000-barrel storage with plans to scale up to 3 million barrels.

Green Energy International Limited (GEIL) has completed the construction of the Otakikpo Onshore Terminal, located in OML 11 near Port Harcourt, marking a historic milestone as Nigeria’s first indigenous onshore crude terminal in five decades.

In June 2025, GEIL lifted its first crude cargo from the newly developed facility, officially kickstarting terminal operations. This achievement signals a new era in Nigeria’s oil and gas industry, particularly for indigenous producers and marginal fields.

The African Energy Chamber (AEC) has commended GEIL for this groundbreaking development. The AEC emphasised that terminals like Otakikpo will enhance Nigeria’s crude export capacity, support marginal field production, and attract new investments by streamlining access to export markets. As Nigeria targets two million barrels per day (bpd) in production, the terminal offers a critical boost to national output.

GEIL began construction in February 2023, and despite industry-wide challenges, completed the project in just two years, six months ahead of schedule. The development included storage facilities, a 23-km pipeline, and essential infrastructure like offices and pump stations.

By March 2025, the facility had begun injecting crude, with GEIL producing an average of 5,000 bpd. Following regulatory approval, GEIL is now positioned to scale production to 30,000 bpd under a revised field development plan.

In June 2025, Shell chartered the terminal’s first cargo vessel, transporting crude directly from the Otakikpo Marginal Field in Rivers State to market via the terminal. This successful operation underscores the terminal’s capability to support efficient and direct crude transportation.

The Otakikpo Terminal boasts a storage capacity of 750,000 barrels, with plans to scale up to three million barrels as market conditions demand. The terminal also features an export capacity of 360,000 bpd, made possible by a 20-inch pipeline linked to a single point mooring system in the Atlantic Ocean. Vessels such as Aframax tankers can now dock and load directly from the terminal.

Before the terminal’s construction, GEIL relied on barges and offshore floating stations to transport crude, incurring high costs. With the new facility, the company expects to cut operating costs by 40%, significantly improving profitability and efficiency for its operations in OML 11.

The terminal is not only a GEIL success story but also unlocks potential for over 40 marginal fields across the region. Designed to receive up to 250,000 bpd from third-party producers, the facility provides a critical outlet for stranded crude, enabling Indigenous producers to scale operations and access export markets directly.

The Nigerian government has prioritised marginal field development to revive production. In 2020, it launched a bidding round that attracted 591 companies competing for 57 oilfields. Ultimately, 161 companies, mostly indigenous, were shortlisted. The passage of the Petroleum Industry Act (PIA) in 2021 introduced improved fiscal terms that further stimulated interest from both local and international investors.

As a result, marginal field production has grown steadily, and GEIL’s onshore terminal is expected to accelerate this trend by providing vital infrastructure for crude storage and export.

NJ Ayuk, Executive Chairman of the AEC, praised GEIL’s leadership and innovation in the sector. “GEIL is not only setting a strong benchmark for other independent operators in Nigeria but also proving the vital role indigenous companies play in the country’s oil and gas sector,” said Ayuk.

“By delivering a domestic solution for producing, storing, and exporting crude, GEIL lays the groundwork for more efficient and competitive oil operations. This terminal will be key in helping Nigeria achieve its crude production targets.”

As Nigeria seeks to modernise its energy infrastructure and maximise its crude export potential, GEIL’s Otakikpo Terminal stands out as a model project for national growth, local empowerment, and operational efficiency.

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