Shell Loads First Crude Shipment from Nigeria’s Otakikpo Terminal
Shell has officially lifted the inaugural crude oil cargo from the newly built Otakikpo onshore terminal in Nigeria, signalling the commencement of exports from the $400 million facility developed by marginal field operator Green Energy International, according to a report by Argus on Monday.
Situated within the OML 11 block southeast of Port Harcourt, the terminal boasts a maximum export capacity of 360,000 barrels per day. Crude is transported via a 20-inch, 23-kilometre pipeline to a single point mooring in the Atlantic Ocean. The terminal’s 21-meter draught accommodates both Aframax and Suezmax tankers.
Green Energy stated that the terminal replaces an expensive barging method that previously cost about $120,000 per day to evacuate crude. The company expects this to significantly reduce Nigeria’s oil production costs—by at least 40 percent.
“The government should see this as a viable, homegrown solution instead of funding multiple floating stations,” said Kayode Adegbulugbe, Managing Director of the Otakikpo Oil Terminal. “Storing crude in tanks cuts down production costs per barrel and operational expenses.”
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Previously, Otakikpo crude was exported via the Ima floating storage unit operated by local company Amni. With the new terminal in place, Green Energy says it could unlock output from over 40 nearby oil fields, with a combined capacity of 200,000 barrels per day and estimated reserves of 3 billion barrels of oil equivalent.
The facility is also designed to take in up to 250,000 b/d from third-party producers, including through a 6-inch, 6-kilometre offshore pipeline. Green Energy aims to build a crude gathering network and expand its storage capacity from the current 750,000 barrels to as much as 3 million barrels. The company noted that additional storage tanks could be added within nine months, depending on demand, although current utilization remains below 12 percent.
Crude oil injection into the terminal began on March 30, with Shell loading the first cargo aboard the Aframax tanker Lipari. In April, Green Energy’s output averaged 5,000 b/d, but it has received regulatory clearance from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to boost production to 30,000 b/d under an updated field development plan.
