- The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued crude oil terminal licenses to Nigerian National Petroleum Company Limited and Belema Oil Producing Limited.
- The licenses were granted in compliance with the Petroleum Industry Act (PIA).
- Nigerian National Petroleum Company Limited’s crude oil terminal will be based in Akwa Ibom state, while Belema Oil Producing Limited’s terminal will be located in Rivers state.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has granted crude oil terminal licences to the Nigerian National Petroleum Company Limited and Belema Oil Producing Limited.
The announcement was made by the Authority on Tuesday night through its social media platforms. The issuance of these licenses is in accordance with the provisions outlined in the Petroleum Industry Act (PIA). The crude oil terminal operated by the Nigerian National Petroleum Company Limited will be situated in Akwa Ibom state, while the Belema crude oil terminal will be located in Rivers state.
The Authority’s statement reads as follows:
- “The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued licenses to establish new crude oil terminals to Nigerian National Petroleum Company Limited (NNPCL) and Belema Oil Producing Limited.
- “At the signing and presentation ceremony to establish the Utapate Export crude oil terminals and Belema Sweet Crude Export terminal, the Authority Chief Executive, Engr. Farouk Ahmed said the issuance was done in line with provisions of the Petroleum Industry Act (PIA) which stipulates guidelines for the establishment of new export terminals.
- “The NMDPRA Boss said NNPC Exploration and Production Limited is to establish 2,179,747 barrels of crude oil (BBLS) crude oil terminal at Offshore Akwa Ibom State within the waters of the exclusive economic zone.
- “Meanwhile, Belema Sweet Export Terminal Limited is to establish 2,000,000 barrels of crude oil (BBLS) crude oil terminal at 20 Nautical Miles of Kula Southern Part of the exclusive economic zone.”
More insights
During the signing, the President of Belema Oil Producing Limited, Tein Jack – Rich complimented the Federal Government for facilitating business operations in Nigeria. According to him, the private sector-led crude oil terminal would bring Nigeria to a global scale as a high-breed terminal.
He said the Belema terminal could add over $11 billion to the national revenue and over 400,000 barrels of crude daily with a storage point that could store eight million barrels of crude.
He said:
- “The terminal will create over 100,000 jobs for people of the Niger Delta and Nigerians at large, and Nigeria will benefit through revenue earnings when operational.”
He said the establishment of the Belema Sweet Crude Export Terminal would position Nigeria as the global leader in establishing a climate-conscious crude oil export terminal with integrated renewable energy through a virtual power plant model.
What you should know
The Organization of Petroleum Exporting Countries (OPEC) has cut Nigeria’s oil production to 1.38 million barrels per day from January to December 2024. However, a review may be done in November 2023 during the next OPEC plus meeting.