Tinubu’s Vision: Nigeria to Commission First New Onshore Crude Oil Export Terminal in 50 Years
Tinubu’s Vision: Nigeria to Commission First New Onshore Crude Oil Export Terminal in 50 Years
Nigeria is set to commission its first new onshore crude oil export terminal in over five decades, as President Bola Ahmed Tinubu’s administration prepares to inaugurate the $400 million Otakikpo terminal in Rivers State on October 8.
The landmark facility, developed by Green Energy International Limited (GEIL), represents the first privately built and managed onshore crude export terminal by an indigenous African company. Completed ahead of schedule, the project has been described by stakeholders as a game-changer for Nigeria’s oil and gas sector, as it is expected to significantly lower production costs, improve evacuation efficiency, and expand the country’s crude export capacity.
Located in Andoni Local Government Area of Rivers State, the Otakikpo terminal currently has a storage capacity of 750,000 barrels of crude oil, with plans to expand to 3 million barrels. Its pumping and loading capacity stands at 360,000 barrels per day, with crude transported through a 23-kilometre, 20-inch pipeline to a single point mooring offshore, where Aframax and Suezmax tankers can load directly for export.
One of the terminal’s most transformative impacts is its ability to reduce evacuation costs.
Before now, producers in the Niger Delta often relied on expensive and logistically challenging barging operations, which cost as much as $120,000 per day. With the Otakikpo terminal, industry experts say the cost of production per barrel for marginal fields could fall by as much as 40 percent.
The project also unlocks opportunities for more than 40 nearby oil fields, many of which have remained “stranded” due to lack of evacuation infrastructure.
Collectively, these fields hold an estimated 3 billion barrels of oil equivalent reserves. The terminal can accommodate up to 250,000 barrels per day from third-party producers, providing an alternative route to market for indigenous operators seeking to ramp up output.
Industry observers note that this development aligns with Tinubu’s broader economic vision of deepening energy self-sufficiency, attracting foreign exchange, and expanding local value capture. With the divestment of several international oil majors from Nigeria’s onshore and shallow-water assets, indigenous firms such as GEIL are increasingly driving a new phase of growth in the country’s oil industry.
However, experts also caution that the facility’s long-term success will depend on factors such as security, environmental protection, and sustained throughput.
The Niger Delta region has a history of crude theft, pipeline vandalism, and community tensions, while global fluctuations in oil prices may also influence returns on investment.
The commissioning ceremony, expected to be attended by President Tinubu, government officials, and industry leaders, will not only mark the launch of the Otakikpo terminal but also signal Nigeria’s renewed push to modernize its energy infrastructure and reposition itself as a competitive player in the global oil market.
