Latest news with #OML11
Zawya
19-06-2025
- Business
- Zawya
Green Energy International Exports First Crude from New Onshore Terminal in Nigeria
Nigerian energy company Green Energy International (GEIL) has completed the development of the Otakikpo onshore terminal, situated in OML 11 near Port Harcourt. In June 2025, the company lifted its first crude cargo from the newly-constructed facility - the first indigenous onshore terminal constructed in the country in five decades – signaling the start of operations at the terminal. The African Energy Chamber (AEC) – the voice of the African energy sector – commends GEIL for the development of the onshore terminal. The AEC believes that facilities such as this will play an instrumental part in supporting marginal field production by facilitating crude exports and increasing revenue generation in Nigeria. As the country strives to produce two million barrels per day (bpd), projects of this nature will support new investments by providing a direct route from offshore fields to market. The Otakikpo terminal was developed in two years - six months ahead of schedule. The company broke ground on the construction of the facility in February 2023, with the development of storage facilities and the associated pipeline advancing in February 2024. Construction works continued to progress through May 2024, with associated infrastructure at the terminal – including offices and pump facilities – progressing in December 2024. By March 2025, the facility began injecting crude, with GEIL's production averaging 5,000 bpd. GEIL has since received regulatory approval from the government to boost production to 30,000 bpd under a revised field development plan. In June 2025, the facility received its first cargo via a vessel chartered by energy major Shell. The maiden cargo transported crude from the Otakikpo marginal field – located in Rivers State and operated by GEIL – to the terminal, kickstarting a new era of efficient crude distribution in Nigeria. The terminal itself is a state-of-the-art facility with a storage capacity of 750,000 barrels. Plans are underway to increase storage capacity to three million barrels – dependent on market demands. The terminal is designed with an export capacity of 360,000 bpd, with crude transported via a 23-km, 20-inch pipeline connected to a single point mooring system in the Atlantic Ocean. At the site, tankers – such as Aframax chartered by Shell – can dock and load. The terminal is expected to significantly reduce operating costs for marginal fields in OML 11, primarily through cost-effective transportation. Prior to the construction of the onshore terminal, GEIL relied on barges to transport crude. However, with the terminal, the company stands to reduce the reliance on costly offshore floating stations, reducing overall operational costs by 40%. For Nigeria's marginal fields, the terminal opens new doors for greater operational efficiency. The terminal is expected to unlock previously-stranded crude from more than 40 marginal fields across the region, with a capacity to receive up to 250,000 bpd from third-party producers. The government has long-sought to revive crude production through the development of marginal fields. A marginal field bidding round was launched in 2020 to entice indigenous operators to invest in marginal field opportunities, drawing in 591 companies seeking to develop 57 oilfields. Ultimately, 161 companies were shortlisted, most of which represented indigenous operators. Improved fiscals introduced through Nigeria's Petroleum Industry Act in 2021 further enticed investments by both international and regional players. Looking ahead, these foundations have seen a rise in marginal field production, with the GEIL-developed onshore terminal set to further support investments and exports. 'GEIL is not only setting a strong benchmark for other independent operators in Nigeria but serves as a testament to the central role indigenous energy companies play in the country's oil and gas sector. By establishing a domestic solution to producing, storing and exporting crude, GEIL is supporting marginal field production while laying the foundation for most efficient oil operations. The facility will play an instrumental part in supporting the country's crude production goals,' states NJ Ayuk, Executive Chairman of the AEC. Distributed by APO Group on behalf of African Energy Chamber.
Reuters
03-06-2025
- Business
- Reuters
Local firms drive new growth phase in Nigeria's oil sector
LAGOS, June 3 (Reuters) - Nigeria is witnessing a significant shift in its oil and gas landscape as local companies expand their roles, driving a new phase of potential sectoral growth and innovation. Leading the charge are companies which bought onshore and shallow water assets from oil majors planning billions of dollars of investments to develop abandoned fields. Smaller producers are also pulling their weight, for example Nigeria's first locally developed and operated onshore crude terminal, Otakikpo, began loading operations on Monday. Built by Green Energy Limited and located in the OML 11 block near Port Harcourt, it marks a milestone in local capacity. Shell (SHEL.L), opens new tab loaded the first crude cargo through the 360,000 bpd capacity terminal on Monday, opening up potential drilling prospects for over 40 stranded fields in the region. Similarly, Conoil Producing Limited ( opens new tab recently shipped the first cargo of its new Obodo crude blend from the onshore OML 150 in the Niger Delta. The cargo was lifted by Oando Trading, a subsidiary of Oando Plc ( opens new tab which bought ENI's ( opens new tab divested assets. Following this trend, Renaissance Africa Energy — after acquiring Shell's onshore assets — is committing to investing $15 billion over the next five years in its oil and gas operations. The company aims not only to balance its portfolio by increasing crude oil production but also to double its gas output once a key local gas pipeline is completed. Similarly, Seplat Energy ( opens new tab, following its acquisition of ExxonMobil's (XOM.N), opens new tab Nigerian shallow-water assets, recently announced plans to reopen 400 previously shut-in wells. CEO Roger Brown said the company is set to invest up to $320 million this year in drilling campaigns and infrastructure, with the goal of boosting crude production to around 140,000 barrels per day. "We are focused on reviving existing wells, expanding drilling campaigns, and increasing gas volumes," Brown said during the company's annual general meeting. While these developments show the increasing role local producers are playing amidst government reforms, they are also grappling with challenges. "These operators face higher costs due to security challenges, community disputes, oil theft and ageing infrastructure – a key aspect of reducing costs for operators will be addressing these challenges," said Mikolah Judson, an analyst at global risk consultancy, Control Risk. These local players, signal a new phase for Nigeria's oil and gas sector and could provide support for the government's plan to raise oil output by additional 1 million barrels per day (bpd) next year, head of Nigeria's oil regulator said. They now account for over half of Nigeria's oil production from around 40% before the oil majors completed their divestment programmes according to the regulator's data.
