The Federal Government on Tuesday increased Nigeria’s oil export storage capacity by 4 million barrels.
The move, according to the Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmad, remains a key milestone as the development will add more than four million barrel capacity to Nigeria’s export storage.
While the development is expected to address unemployment, especially in the Niger Delta region, as one of the facilities will raise as much as $5.85 billion in revenue, Ahmad disclosed that the licences offered to NNPC Exploration and Production Limited would see the establishment of a 2,179,747 barrel crude oil terminal at Offshore Akwa Ibom State within the waters of the Exclusive Economic Zone Nigeria.
He added that Belema Sweet Export Terminal would see the establishment of a 2,000,000 barrel crude oil terminal at 20 Nautical Miles of Kula Southern Part of the Exclusive Economic Zone of Nigeria.
According to him, investors with an interest in developing crude terminals should see the move as a fresh approach by the government to offer more such licences.
“We are here to enable investment and we will make it eases as we are already committed to ease of doing business. These are the first two, we believe that these will open the door to people who are interested in investing in the sector,” he said.
According to him, the terminals are expected to operate within the provision of the conditions of the Licences as contained in the licence documents.
President of Balemaoil, Tein Jack-Rich stated that the project would address the growing demand for operational efficiency, storage production security and transportation solutions in Nigeria’s Petroleum Industry.
The terminal, according to him, will serve as a vital Infrastructural component for the processing, storage, handling and distribution of crude oil design capacity of 400,000 barrels of liquid dally and secure revenue of over $5.85 billion.
Disclosing that the infrastructure will address oil theft and create 100,000 jobs for the Niger Delta and Nigeria, adding that the project operates as a hybrid facility that would address climate change challenges.
Jack-Rich, who said the project is funded on collaboration, noted that the facility would be operational in six months.
”The Terminal will be primarily powered by green energy generated from installed 3.6MW Wind Turbines as well as the integration of traditional energy This will be the first of its kind in an oil export terminal in the World. This operational model is to reduce carbon footprint while protecting the environment,” he said.
