The federal government has issued licences to the NNPCL Exploration and Production Ltd. and Belema Sweet Export Terminal Ltd to establish crude export terminals.

The licences were approved and issued to the companies on Tuesday in Abuja by Farouk Ahmed, Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The NNPCL Exploration and Production Ltd. operates Utapate Export Terminal in Akwa Ibom while the Belema Sweet Export Terminal Ltd in Rivers.

They are the first set of licences to establish crude oil terminals, sealed and granted by the NMDPRA.

Speaking at the signing of the Terminal Establishment Licences, Mr Ahmed said the development would add more than four million barrels of capacity to Nigeria’s Export Storage.

He said the issuance of the licences was according to the provisions of the Petroleum Industry Act (PIA 2021), which stipulated new provisions for establishing new export terminals.

The PIA Section 174(1) (a) says, “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 NMDPRA processed and approved enables one to establish, construct or operate a terminal or other facility for exporting or importing crude oil or petroleum products.

Modibbo Ahmed, who received the license on behalf of 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.

Belema Oil Producing Ltd CEO 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 a high-breed terminal.

Mr Jack-Rich said the terminal could generate over $11 billion in national revenue and over 400,000 barrels of crude daily with a storage point that could store eight million barrels of crude.

“Basically, 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.

He said establishing 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.

(NAN)