Nigeria’s first crude oil export terminal in 50 years is undergoing a major expansion that will raise its storage capacity from 750,000 barrels to 3 million barrels.
The Otakikpo onshore terminal, located in the OML 11 block southeast of Port Harcourt, was developed and is operated by Green Energy International Limited, a Nigerian-owned oil and gas company led by Professor Anthony Adegbulugbe.
The $400 million facility, which currently stores up to 750,000 barrels of crude, is undergoing expansion to raise its capacity to 3 million barrels, Adegbulugbe disclosed in Abuja.
According to the CEO, the expansion aligns with Green Energy’s strategy to more than double its own crude production while enabling other independent producers to export their crude through multiple injection points available at the terminal.
The move positions Green Energy as a central player in Nigeria’s effort to boost oil exports amid declining participation by international oil majors.
Indigenous Operators Lead Nigeria’s Oil Revival
Nigeria, Africa’s largest crude producer, has been working to raise oil output through improved security and investment reforms.
The government’s increased reliance on indigenous firms has become a defining feature of the nation’s upstream landscape, following the gradual divestment of international companies from onshore and shallow water assets.
Industry data from Welligence Energy Analytics shows that independent Nigerian operators are now driving a larger share of the country’s total oil production.
Facilities such as Otakikpo are therefore vital in ensuring continuity of exports, providing storage and pumping solutions previously dominated by international infrastructure.
Strategic Financing and Infrastructure Development
The Otakikpo terminal’s $400 million financing package was achieved through a combination of local and international partnerships.
Adegbulugbe confirmed that Shell Plc, Fidelity Bank Plc, and other local investors provided strategic funding support for the project.
The facility has a pumping capacity of 350,000 barrels per day, with infrastructure designed to open access to over 40 previously stranded oil fields in the region.
The development of the Otakikpo terminal is expected to ease logistical challenges faced by smaller operators who previously relied on costly third-party export routes. By offering a local, secure, and high-capacity export channel, the project enhances Nigeria’s energy self-sufficiency and strengthens the midstream oil value chain.
Catalyst for Local Content and Industrial Growth
Government officials have described the project as a catalyst for local content growth and midstream development.
According to Temitope Ajayi, spokesperson for the Federal Government, the terminal represents a strategic milestone that allows local operators to manage the entire oil value chain — from production to export.
“This project empowers Nigerian companies to control the full cycle of operations, aligning with the administration’s agenda to deepen local participation and build capacity across the oil and gas value chain,” Ajayi stated.
Beyond its crude export capacity, the facility also generates 15 megawatts of gas-fired power for its operations, reducing production costs and enhancing sustainability. The integration of gas-to-power operations reflects the industry’s shift toward cleaner, more efficient energy utilization.
Green Energy’s Expansion Plan
Green Energy International plans to expand further into gas processing and value addition. The company is developing a methanol production facility, a mini-LNG plant, and an industrial park that will supply gas to local manufacturers in the Port Harcourt industrial corridor.
Discussions are currently underway with the African Export-Import Bank (Afreximbank) for a $20 million financing package to support the LNG component of the project.
These expansions are designed to integrate crude and gas value chains while creating local employment and manufacturing opportunities. The industrial park is expected to attract industries seeking reliable energy sources and proximity to feedstock.
A Turning Point in Nigeria’s Oil Infrastructure
The commissioning and expansion of the Otakikpo terminal mark a pivotal moment in Nigeria’s energy history. It represents not only the first crude oil export terminal built in 50 years but also a successful case study in indigenous capacity, financing innovation, and integrated energy development.
As the global oil market evolves and major international companies reduce their Nigerian footprint, projects like Otakikpo demonstrate the ability of local operators to sustain and grow production.
The terminal’s expansion underscores a long-awaited shift toward Nigerian-led energy infrastructure, capable of driving growth, efficiency, and national development across the oil and gas sector.
