- Green Energy International launched an onshore crude oil terminal in Rivers State to cut production costs by 40%.
- The terminal boosts local storage, supports stranded oil fields, and helps Nigeria meet its crude production goals.
Green Energy International Limited has officially unveiled Nigeria’s first Indigenous onshore crude oil export terminal at Otakikpo, Rivers State. Industry experts say the move could slash Nigeria’s high crude production costs by up to 40% and help unlock stranded reserves.
The new terminal, developed by Green Energy under its Otakikpo Marginal Field operations within Oil Mining Lease (OML) 11, aims to eliminate crude evacuation bottlenecks. This significant barrier continues to hamper the Federal Government’s target of producing three million barrels of oil daily.
The facility boasts an initial storage capacity of 750,000 barrels, potentially expanding to three million barrels, and a loading capacity of 360,000 barrels per day. Green Energy officials say this infrastructure will significantly reduce operational costs for local oil producers, especially marginal field operators, who have long suffered due to the absence of accessible, cost-effective evacuation options.
“This terminal provides a carpooling effect for producers,” said Kayode Adegbulugbe, Managing Director of the Otakikpo Oil Terminal, during the facility launch in Port Harcourt. “It allows multiple companies to store and evacuate crude more efficiently, rather than relying on costly floating production systems.”
Adegbulugbe emphasised that Nigeria currently spends over ₦ $1.57 trillion monthly on crude production, approximately ₦ $18 trillion annually. The high cost is driven by a $25 to $40 per barrel production rate, far higher than in countries like Saudi Arabia, where the cost hovers around $10 per barrel.
He said the new terminal will allow Nigerian producers to store crude locally, reduce logistical costs, and shift away from floating or offshore evacuation systems. Green Energy estimates that production costs could drop by at least 40%.
Professor Anthony Adegbulugbe, Chairman of the Green Energy board, hailed the development as a breakthrough for local content and energy independence.
“This is the first onshore crude terminal built by a Nigerian operator. International oil companies have developed all similar facilities,” he stated. “We’re showing the nation and the industry that indigenous engineering can deliver world-class results.”
He noted that the terminal’s accessibility by pipeline, truck, barge, and sea gives it a strategic advantage, making it a hub for approximately 40 marginal fields that remain unproductive due to evacuation constraints.
Adegbulugbe credited the local community, particularly the Okama of Ikuru, and Nigerian marine firm West African Ventures for their construction and technical support roles, despite facing significant challenges such as weather delays, sunken barges, and $250,000-per-day standby charges.
The Independent Petroleum Producers Group (IPPG) praised the facility launch. Its Executive Coordinator, Oyeleke Banmeke, described the terminal as critical to Nigeria’s oil and gas infrastructure.
The Federal Government has set a production target of 2.06 million barrels per day in 2024, though actual output has often lagged due to insecurity, pipeline vandalism, and logistical bottlenecks.
Addressing these long-standing evacuation issues, Green Energy’s facility could restore confidence in Nigeria’s upstream sector, especially for indigenous and marginal field operators struggling to stay profitable.
In addition to improving oil logistics, Green Energy pledged that the terminal would support Nigeria’s energy transition goals by contributing to eliminating gas flaring in the region. “We’re not just offering a storage facility,” said Adegbulugbe. “We are enabling cleaner operations, increasing capacity, and ensuring flexibility. This project embodies what Nigerian companies can achieve with resilience, partnerships, and vision.”
The company also guided the tour for government officials, oil producers, and industry stakeholders, reinforcing its call for strategic alliances across the sector to maximise the terminal’s impact.