Uche Usim, Abuja
The Department of Petroleum Resources (DPR), has approved the construction of a one-million-barrel capacity onshore terminal for Green Energy International Ltd (GEIL), the operator of the Otakikpo marginal field in OML 11 in Rivers State.
The issuance of the Approval to Construct (ATC) was sequel to DPR’s 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.
In the letter conveying the approval dated April 23, 2019, the regulator (DPR) stated that, “we hereby communicate the approval of the Department of Petroleum Resources to you for the detailed engineering design of one million barrels onshore crude oil storage facility project. You may therefore proceed to the construction and installation phase of the project.”
Commending 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 cost of production. The cost of evacuation using the onshore terminal will significantly reduce the export evacuation cost for oil production in the Otakikpo field and other nearby production fields.
He added that the terminal will provide employment for hundreds of people from the host community, effectively linking the upstream benefits to the local, state and national economy. The onshore terminal will be situated in an Industrial Park being facilitated by the company.
“It is noteworthy that 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 five decades. Construction of the proposed terminal is expected to start soon by a consortium of internationally reputable EPC contractors.