NNPCL, Belema Ltd. secure licenses for establishment of Crude Export Terminals

The federal government has recently granted licenses to two companies, NNPCL Exploration and Production Ltd. and Belema Sweet Export Terminal Ltd., for the establishment of crude export terminals.

This significant development was approved and issued by Mr. Farouk Ahmed, the Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in Abuja.

NNPCL Exploration and Production Ltd. is responsible for operating the Utapate Export Terminal, which is situated in Akwa Ibom State. Meanwhile, Belema Sweet Export Terminal Ltd. is located in Rivers State.

This move by the Nigerian Government is a positive step towards the growth and development of the country’s oil and gas industry. It is expected to create more job opportunities and boost the economy. The establishment of these crude export terminals will also enhance the country’s capacity to export crude oil, thereby increasing revenue generation.

The NMDPRA has recently granted the first set of licences for the establishment of crude oil terminals, marking a significant milestone since the merger of the Petroleum Product Pricing Regulatory Agency (PPPRA) and Petroleum Equalisation Fund (PEF) as specified by the Petroleum Industry Act (PIA). This development is set to add over four million barrels of capacity to Nigeria’s Export Storage, a crucial step towards enhancing the country’s oil export capabilities.

During the signing of the Terminal Establishment Licences, Ahmed, a representative of the NMDPRA, emphasized that the issuance of these licences was in accordance with the provisions of the Petroleum Industry Act (PIA 2021), which outlines new regulations for the establishment of export terminals. This move is a testament to Nigeria’s commitment to modernizing its oil and gas industry and promoting sustainable growth.

The establishment of these crude oil terminals is a significant achievement for Nigeria, as it will not only increase the country’s export capacity but also create new job opportunities and boost economic growth. This development is a clear indication of the government’s efforts to attract foreign investment and promote a conducive business environment.

According to the 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’’.

He said the licence which it processed and approved enables one to establish, construct or operate a terminal or other facility for the export or importation of crude oil or petroleum products.

Responding, Mr Modibbo Ahmed, who received the license on behalf of the Nigerian National Petroleum Company Ltd (NNPC Ltd) disclosed that the crude oil terminal would be operational within three months.

According to him, the NNPCL E&P is a subsidiary of the NNPC Ltd responsible for the exploration and production of crude oil and will have its first cargo soon for the benefit of Nigerians.

The Chief Executive Officer of Belema Oil Producing Ltd., Mr Tein Jack-Rich, who lauded the Federal Government for facilitating business operations in Nigeria said the terminal would bring Nigeria to a global scale as high breed terminal.

Jack-Rich said the terminal had capacity to generate 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 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.

Speaking on the subsidy removal, he said the development would spur production of more oil and crude for local refineries and consumption.

“With this, what we produce will be accounted for. We also have another wing of project to establish a mini refinery to refine excess capacity for local consumption,’’ he said.