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 a 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 23 April 2019, the regulator (DPR) stated “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.”
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. 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 the 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.
“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”, he stated.
The Chairman maintained that safety has been accorded a priority consideration in the engineering design, adding that the terminal equipment would be adequately selected and installed in a way to prevent equipment damage and environmental pollution. He promised that all the terminal operations staff will be adequately trained to ensure operations are managed effectively while complying with all HSE rules and regulations.
The traditional ruler of the community, the His Royal Majesty, Okanma Aaron Ikuru had earlier pledged the support of the community to the project claiming that the company had carried the community along in its development of the Otakikpo Marginal Field. He said apart from the benefit to the economy, his community and the entire Andoni region would benefit from the establishment of the Terminal.
Meanwhile, the department has also approved the conceptual design for the 40,000 barrels per day flow station for the field. The flow station was being planned to handle the increased production envisaged in the second phase of the development of the Otakikpo Marginal Field and serve as a processing hub for other oil fields nearby. Otakikpo Marginal Field which commenced production in 2017 presently produces 6000 barrels of oil per day.