The Nigerian Federal Government has issued licenses to NNPCL Exploration and Production Ltd. and Belema Sweet Export Terminal Ltd. for the establishment of crude export terminals. The licenses were officially approved and granted to the companies on Tuesday in Abuja by Mr. Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
NNPCL Exploration and Production Ltd. operates the Utapate Export Terminal located in Akwa Ibom State, while Belema Sweet Export Terminal Ltd. is situated in Rivers State. These licenses mark the first set of approvals granted by the NMDPRA since the merger of the Petroleum Product Pricing Regulatory Agency (PPPRA) and Petroleum Equalisation Fund (PEF) in accordance with the provisions of the Petroleum Industry Act (PIA).
During the signing of the Terminal Establishment Licenses, Mr. Ahmed stated that this development would increase Nigeria’s export storage capacity by over four million barrels. He emphasized that the licenses were issued in compliance with the provisions of the Petroleum Industry Act (PIA 2021), which introduced new regulations for the establishment of export terminals.
As per Section 174(1)(a) of the PIA, “Except in accordance with an appropriate license issued by the Authority, a person shall not undertake the following activities with respect to midstream petroleum liquids operations.” Mr. Ahmed explained that the licenses enable the establishment, construction, or operation of terminals or other facilities for the export or importation of crude oil or petroleum products.
In response, Mr. Modibbo Ahmed, who received the license on behalf of the Nigerian National Petroleum Company Ltd (NNPC Ltd), revealed that the crude oil terminal would become operational within three months. He noted that NNPCL Exploration and Production Ltd., a subsidiary of NNPC Ltd., is responsible for the exploration and production of crude oil and will soon have its first cargo, benefiting the Nigerian people.
Mr. Tein Jack-Rich, the CEO of Belema Oil Producing Ltd., commended the Federal Government for facilitating business operations in Nigeria and highlighted that the terminal would position Nigeria on a global scale as a high-quality hybrid terminal. He mentioned that the terminal has the capacity to generate over $11 billion in national revenue and process over 400,000 barrels of crude oil daily, with a storage capacity of eight million barrels.
“This terminal will create over 100,000 jobs for people in the Niger Delta and Nigerians at large, and Nigeria will benefit through revenue earnings when operational,” said Mr. Jack-Rich. He further stated that the establishment of the Belema Sweet Crude Export Terminal would position Nigeria as a global leader in establishing an environmentally conscious crude oil export terminal integrated with renewable energy through a virtual power plant model.
Regarding the removal of subsidies, Mr. Jack-Rich expressed that it would stimulate the production of more oil and crude for local refineries and consumption. He also mentioned plans to establish a mini-refinery to refine excess capacity for local consumption.
The issuance of these licenses marks a significant step forward in Nigeria’s oil and gas industry, providing opportunities for economic growth, job creation, and enhanced revenue generation for the nation.
