Abuja (Sundiata Post) – Federal Government has granted approval for construction of a one-million-barrel capacity to the onshore terminal operator of Otakikpo marginal field in OML 11, Green Energy International Ltd (GEIL).
Issuance of the approval to construct (ATC) was a sequel to Department of Petroleum Resources (DPR) 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.
“We hereby communicate the approval of the Director of Petroleum Resources to you for the detailed engineering Design of one (1) million Barrels Onshore Crude Oil storage Facility project. You may, therefore, proceed to the construction and installation phase of the project,” FOR wrote in the approval letter.
The proposed Otakikpo Onshore Terminal will be the first indigenous onshore terminal and also the first to be built in the country in the past 50 years.
Construction of the proposed terminal according to Director Corporate Affairs, GEIL, Olusegun Ilori, is expected to start soon by a consortium of internationally reputable EPC contractors.
The project is part of the robust development strategy to expand production and de-risk the evacuation of its crude from the Otakikpo field, thereby reducing drastically the cost of its evacuation from the field.
The proposed Terminal will be strategically located to also benefit several otherwise stranded oil fields in the Eastern Niger Delta axis by providing commercially viable and operationally efficient access to the export market.
Commending the DPR for its prompt approval of its proposed Onshore Terminal project, the Chairman of GEIL, Prof. Anthony Adegbulugbe, said the development of an Onshore Terminal is in synergy with the present administration’s overarching strategy to boost oil production while at the same time reducing the cost of production.