FG Targets $11b, as More Oil Export Get Terminal Licences
The Federal Government, on Tuesday, issued and signed licences for the establishment of two crude oil export terminals, capable of generating $11bn revenue annually for the country.
It issued the licences through the Nigerian Midstream and Downstream Petroleum Regulatory Authority to Belema Sweet Export Terminal Limited and NNPC Exploration and Production Limited in Abuja.
Speaking at the event in Abuja, the Chief Executive, NMDPRA, Farouk Ahmed, said the signing of the terminal establishment licences for the two crude export terminals would lead to the addition of more than four million barrels of oil capacity to Nigeria’s export storage.
“Our activities today are pursuant to the provisions of the PIA (Petroleum Industry Act), which has stipulated new provisions for the establishment of new export terminals.
“According to PIA Section 174(1) (a) ‘Except in accordance with an appropriate licence issued by the Authority, a person shall not undertake the following activities with respect to midstream petroleum liquids operations — (a) establish, construct or operate a terminal or other facility for the export or importation of crude oil or petroleum products.’
“The authority has processed and hereby approves Terminals Establishment Licences for: (a) NNPC Exploration and Production Limited to establish 2,179,747 barrels Crude Oil Terminal at Offshore Akwa Ibom State within the waters of the Exclusive Economic Zone Nigeria.
“(b) Belema Sweet Export Terminal Limited to establish a 2,000,000 barrels Crude Oil Terminal at 20 Nautical Miles of Kula Southern Part of Exclusive Economic Zone Nigeria,” Ahmed stated.
He noted that subsequent to these licences, terminal establishment notices were to be published in the Federal Government gazette.
“The terminals are required to operate within the provisions of the conditions of the licences as contained in the licence documents. Kindly note that the authority is committed to ease of doing business in the industry,” the NMDPRA boss stated.
The President and Founder Belema Oil Producing Limited, Tien Jack-Rich, said the facilities would generate over $11bn annually for Nigeria, adding that Belema Oil would work hard to get its terminal ready within six months.
“Nigeria will benefit through the revenue earnings from the facility. This terminal can generate over $11bn to our national revenue every single year, and that’s 400,000 barrels of crude every single day,” he stated.
He added, “With the establishment of Belema Sweet Crude Export Terminal, Nigeria now ranks number one in the world to establish a crude oil export terminal that is climate-conscious, where traditional energy and renewable energy integration is operated through a virtual power plant model.
PUNCH