May 13, 2019 [Construction Review Online] – Construction of a one-million-barrel capacity onshore terminal in Nigeria has been approved by the Department of Petroleum Resources (DPR).
Chairman of Green Energy International Ltd. (GEIL), Prof. Anthony Adegbulugbe revealed the reports and said that 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.
First indigenous Onshore Terminal
The proposed Otakikpo Onshore Terminal located at the Otakikpo marginal field in OML 11, 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.
The project is 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 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,” said Prof. Anthony.
Access to the export market
The terminal according to Prof Anthony, 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.
The terminal equipment would be be adequately selected and installed in a way to prevent equipment damage and environmental pollution as part of safety considerations. Operation staff will additionally receive adequate training to ensure operations are managed effectively while complying with all HSE rules and regulations.
“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. The Terminal will also provide employment to hundreds of people from the host community and link the upstream benefits to the local, state and national economy,” said Mr. Anthony.
DPR has also approved the conceptual design for the 40,000 barrels per day flow station for the field. The flow station was being planned to handle the increased production envisaged in the second phase of the development of the Otakikpo Marginal Field and serve as a processing hub for other oil fields nearby. Otakikpo Marginal Field which commenced production in 2017 presently produces 6000 barrels of oil per day.