Fresh hope for 3-million bpd as GEIL unlocks 40 stranded oil fields
Nigeria’s push for a 3 million barrels per day (bpd) of crude oil production may become realised following an expansion 3 million bpd terminal in the Nigeria Delta.
The terminal, which is expected to unlock about 40 stranded oil field and built by indegenous producers, Green Energy International Limited’s (GEIL) is located at the Otakikpo field in Rivers.
Already, the Nigerian National Petroleum Company (NNPC), under the leadership of Bayo Ojulari, faces mounting pressure to modernise ageing oil infrastructure and decentralise crude evacuation, both seen as key to boosting national output.
Without such infrastructure, operators are relying on tankers to evacuate crude in the face of weak pipelines, which has pushed Nigeria’s per barrel oil production to an unsustainable $40.
Industry leaders are urging NNPC to work closely with indigenous operators like GEIL to unlock more production and reduce losses tied to the country’s vulnerable pipeline network.
The Otakikpo terminal with current capacity of 750,000 barrels, with room to expand to 3 million barrels is reportedly Nigeria’s first privately developed crude export facility by an African operator in Nigeria in over 50 years.
With the ability to pump 360,000 barrels per day, it offers a secure and efficient alternative to the country’s old and vandalism-prone pipelines. GEIL’s approach uses advanced multiphase gathering systems, including pumps and meters, which allow crude to be transported safely and efficiently over shorter distances. This decentralised system reduces dependence on long pipelines and opens up access for third-party producers to export crude.
More importantly, the Otakikpo terminal offers a way to unlock over 40 stranded oil fields in the surrounding area, which hold an estimated 3 billion barrels of oil equivalent (BOE).
Experts believe that if NNPC supports indigenous operators with modern solutions like Otakikpo, Nigeria can quickly boost its production levels. This would not only help meet the national target of 3 million bpd but also strengthen the local oil industry and reduce the risks tied to overreliance on ageing infrastructure.
