Green Energy International Limited has disclosed that negotiations for the commencement of engineering, procurement and construction of the one million barrels per day Otakikpo marginal field in Oil Mining Licence (OML) 11 would be concluded in four weeks.
Speaking on the terminal construction, Chairman, GEIL, Professor Anthony Adegbulugbe said the company had taken the bull by the horns to construct the one-million-barrel capacity onshore terminal since the government gave its approval.
Recall that in April 2019, the Federal Government approved the one-million-barrel crude oil onshore terminal for the Otakikpo marginal field in OML 11.
The field operator announced the approval after it received the nod of the Department of Petroleum Resources (DPR) to construct the terminal.
Following the secured nod, GEIL and its partner in the Otakikpo oil field project, Lekoil Oil and Gas Investment Ltd, signed-off a N143.96 million intervention project for its host communities in Rivers State and the Niger Delta region.
In July 2019, GEIL secured a $350 million financing package for the development of the second phase of the Otakikpo Marginal Field in OML 11 in Rivers State.
According to the Director, Corporate Affairs of the Green Energy, Olusegun Ilori, the financing package was secured after it signed a Memorandum of Understanding (MoU), with the financiers, comprising a consortium of international companies including an oil services giant, London based international bank, a prominent crude oil off-taker and EPIC contractor.
What you should know about the field: Otakikpo is a marginal field lying in the oil mining lease OML11, located approximately 60km south-east of Port Harcourt in the Rivers State, Nigeria.
The field was developed by its operator, GEIL in collaboration with its technical and financial partner Lekoil Oil and Gas. While GEI takes pride in its 60% participating interest in the field, Lekoil holds 40% stake.
OML11 was farmed out to GEIL by the SPDC JV, which comprises the Shell Petroleum Development Company, Total E&P Nigeria, Nigerian Agip Oil Company, and Nigerian National Petroleum Corporation (NNPC).
OML 11 covers an area of 3,095.25 square kilometres that stretch between Rivers and Imo States with 14 oilfields, 10 out of which are located in Ogoni area of Rivers.