Nigeria Adds 4 Million Barrels To Its Oil Export Storage Capacity
In an effort to attract investors to the industry, the Federal Government yesterday granted its first terminal establishment licenses under the Petroleum Industry Act (PIA) to Nigeria National Petroleum Company Limited and Balema Oil Producing Limited.
The move, proposed by the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), is nevertheless a significant accomplishment because it will increase Nigeria’s export storage capacity by more than 4 four million barrels, according to Farouk Ahmad, chief executive of the agency.
While the development is expected to reduce unemployment, particularly in the Niger Delta region, as one of the facilities will generate up to $5.85 billion in revenue, Ahmad revealed 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 Nigeria’s Exclusive Economic Zone.
In the southern part of Nigeria’s Exclusive Economic Zone, 20 nautical miles from Kula, a 2,000,000 barrel crude oil terminal would be built as part of the Belema Sweet Export Terminal, the speaker continued.
He claimed that investors interested in building crude terminals should view the action as a novel strategy by the government to grant additional such licenses.
“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.
He claims that the terminals must function in accordance with the provisions of the licenses as stated in the license paperwork.
The project, according to Balemaoil’s president Tein Jack-Rich, would satisfy the expanding demand in Nigeria’s petroleum industry for operating efficiency, storage production security, and transportation solutions.
He claims that the terminal, which has a design capacity of 400,000 barrels of liquid storage, will be an essential piece of infrastructure for the processing, handling, storage, and transportation of crude oil and will generate approximately $5.85 billion in revenue.
stating that the project runs as a hybrid facility that will handle climate change issues, 100,000 employment will be created for the Niger Delta and Nigeria, and that the infrastructure will combat oil theft.
The facility would be operational in six months, according to Jack-Rich, who claimed that the project is supported by partnership.
”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.
