Nigeria has embarked on a milestone in its oil industry by exporting the first crude shipment from the Otakikpo onshore terminal—marking a historic first for an indigenous operator in over half a century.
The Otakikpo marginal field, located in OML 11 in the Niger Delta, recently delivered its inaugural batch of crude to Shell Western Supply & Trading, part of an arrangement that included 120,000 barrels slated for shelling at market rates.
The shipment kickstarts cash flow from the field, with current production running at approximately 5,000 barrels per day and plans to ramp up to 10,000 bpd in the near term.
Developed jointly by Green Energy International Ltd (GEIL) and Lekoil—with GEIL as the operator—the Otakikpo terminal required extensive onshore facilities and an offshore pipeline. These installations were fully commissioned recently following regulatory approval. The project, costing around $400 million, includes storage capacity for 750,000 barrels and export throughput potential of 360,000 bpd.
The Department of Petroleum Resources (DPR) confirmed Otakikpo as Nigeria’s first onshore crude export terminal built by an indigenous firm in over 50 years. This fills a significant infrastructure gap by providing a direct route to export stranded oil reserves in the region.
With the initial cargo lifted, Lekoil and GEIL are now targeting a full Phase 1 turnaround, aiming for 10,000 bpd before pursuing subsequent expansion stages. Meanwhile, GEIL plans to roll out several more indigenous terminals—representing an investment push that could lift Nigeria’s production and strengthen local capacity .
The Otakikpo export marks a shift in Nigeria’s oil strategy, emphasizing domestic-led infrastructure projects. As local operators seize opportunities to take over onshore assets once held by IOCs, Nigeria is making strides to fortify its upstream sector and reach production targets while reducing reliance on foreign-owned facilities.
This export heralds a new chapter in Nigeria’s oil story, one where homegrown companies like GEIL and Lekoil spearhead national energy goals, raise production levels, and deepen onshore logistics capabilities.