Shell Loaded First Crude Cargo from Nigerian Otakikpo Terminal

SEATTLE (Oil Monster): Shell announced that it has loaded first crude oil cargo from Nigeria’s new onshore Otakikpo terminal. The light sweet Otakikpo crude was exported via the Ima floating storage unit operated by local firm Amni. The first cargo was boarded the Aframax tanker Lipari.

The terminal, located in the OML 11 block southeast of Port Harcourt, has a capacity to export maximum of 360,000 barrels per day of crude oil. The $400 million facility was developed by Green Energy International.

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According to the company, the new facility has capability to unlock stranded output from more than 40 nearby fields with a combined capacity of 200,000 b/d and estimated reserves of 3bn barrels of oil equivalent. Also, the terminal has capacity to receive up to 250,000 b/d from third-party producers.

The terminal replaces a costly barging system, thus leading to significant reduction in overall oil production costs. Green Energy plans to expand the storage capacity of the terminal from existing 750,000 barrels to as much as 3 million barrels. Also, the company stated its readiness to add tank storage within nine months if demand rises. The current utilization is estimated at less than 12%, sources said.

The company had begun injecting crude into the terminal by end-March this year.