Shell Plc and Fidelity Bank Plc have joined a consortium of partners backing the $400 million expansion of the Otakikpo crude oil export terminal, a strategic onshore facility operated by Green Energy International Limited.
The Otakikpo terminal, located within Oil Mining Lease (OML) 11, southeast of Port Harcourt, is the first crude oil export terminal to be developed in Nigeria in 50 years.
Built by Green Energy International, the facility currently holds 750,000 barrels of crude oil but is undergoing an upgrade that will raise its capacity to 3 million barrels.
Strategic Expansion to Boost Nigeria’s Export Capacity
The expansion project represents a major milestone in Nigeria’s upstream and midstream infrastructure renewal. It will enhance the country’s ability to store and export crude efficiently, while reducing dependence on ageing terminals owned by international oil companies.
According to Professor Anthony Adegbulugbe, Chief Executive Officer of Green Energy International, the upgraded facility will feature multiple injection points that allow indigenous producers to export crude directly through the terminal. The company is also increasing its own production volumes to meet growing export demand.
“The Otakikpo terminal is designed as a shared export platform for independent producers and marginal field operators in the Niger Delta,” Adegbulugbe stated in Abuja. “The expansion will unlock over 40 stranded oil fields and stimulate fresh investments in production.”
Shell and Fidelity Bank Strengthen Local Partnership Model
The $400 million expansion was financed through a mix of local and international funding, underscoring the growing collaboration between global oil majors and Nigerian financial institutions to promote local content.
Shell Plc, which provided early technical and financial support, remains a strategic partner in the development. Fidelity Bank Plc, a Lagos-based commercial lender, led part of the local financing, demonstrating confidence in Nigeria’s indigenous energy operators.
Industry analysts note that the project’s financing structure aligns with the government’s ongoing reforms aimed at attracting private capital into critical energy infrastructure while reducing the dominance of foreign-owned export systems.
Catalyst for Local Content and Energy Security
The terminal’s expansion has been identified by policymakers as a key driver of Nigeria’s local content agenda. According to Temitope Ajayi, spokesperson for the Federal Government, the project represents a major step toward empowering domestic producers.
“It allows Nigerian companies to control the full oil value chain — from production to export,” Ajayi said. “This is precisely the type of indigenous growth model envisioned under the Petroleum Industry Act (PIA).”
The terminal, which can pump up to 350,000 barrels per day, is expected to provide a reliable export outlet for smaller producers while supporting Nigeria’s overall production target of two million barrels per day.
Integrated Energy Approach
Beyond crude exports, Green Energy International has integrated power and gas operations into the Otakikpo development plan. The facility generates 15 megawatts of gas-fired power for its operations, reducing reliance on diesel and cutting production costs.
The company is also planning a methanol production unit, a mini-LNG facility, and an industrial park that will supply gas to local manufacturers. Negotiations are ongoing with the African Export-Import Bank (Afreximbank) for a $20 million financing package to support the gas and LNG components.
These projects position Green Energy International as one of Nigeria’s most diversified indigenous operators with a strong focus on midstream integration and industrial gas utilization.
Driving Indigenous Control in the Oil Sector
Nigeria has seen an increasing shift toward indigenous oil ownership, as international majors divest onshore assets due to rising operational risks and costs.
The Otakikpo terminal is part of a broader government-backed effort to strengthen domestic players, improve security, and stabilize output.
Industry experts say the success of the Green Energy-led expansion could become a model for replicating locally financed export terminals across the Niger Delta, reducing logistical bottlenecks and supporting new investments in marginal fields.
A Model for Collaborative Energy Investment
The combination of Shell’s technical support and Fidelity Bank’s domestic financing underscores the potential of joint public-private partnerships in sustaining Nigeria’s energy growth.
The Otakikpo terminal expansion reflects a renewed focus on building resilient, locally managed export infrastructure, aligned with national economic diversification objectives.
Once completed, the 3-million-barrel-capacity terminal will not only expand Nigeria’s export flexibility but also strengthen its position as Africa’s leading crude producer with homegrown operational control.
