The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued licences for the establishment of two crude oil export terminals.
The authority issued the licences to Belema Sweet Export Terminal Limited and NNPC Exploration and Production Limited, on Tuesday, in Abuja.
Speaking at the event, Farouk Ahmed, chief executive officer (CEO) of NMDPRA, said the licencing for the two crude export terminals would add more than four million barrels of oil to Nigeria’s export storage.
“Our activities today are pursuant to the provisions of the Petroleum Industry Act (PIA), which has stipulated new provisions for the establishment of new export terminals,” Ahmed said.
He quoted section 174(1) (a) of the PIA as stating that 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,” he said.
“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 said following the issuance of the licences, terminal establishment notices will 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,” Ahmed said.
Also speaking at the signing ceremony, Tien Jack-Rich, president and founder, Belema Oil Producing Limited, said the facilities would generate over $11bn annually for Nigeria.
He added that Belema Oil would work diligently to get its terminal ready within six months.
“Nigeria will benefit through the revenue earnings from the facility. This terminal has the capacity to generate over $11 billion to our national revenue every single year, and that is 400,000 barrels of crude every single day,” he said.
“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.”
Source : The Cable
