The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has granted licences to Belema Sweet Export Terminal Limited and NNPC Exploration and Production Limited.
The licences which is for the establishment of two crude oil export terminals was issued on Tuesday in Abuja.
Speaking at the event, Farouk Ahmed, chief executive officer (CEO) of NMDPRA, said the licencing for the two crude export terminals would add more than four million barrels of oil to Nigeria’s export storage.
“Our activities today are pursuant to the provisions of the Petroleum Industry Act (PIA), which has stipulated new provisions for the establishment of new export terminals,” Ahmed said.
He quoted section 174(1) (a) of the PIA as stating that 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 — (a) establish, construct or operate a terminal or other facility for the export or importation of crude oil or petroleum products”.
“The authority has processed and hereby approves terminals establishment licences for: (a) NNPC Exploration and Production Limited to establish 2,179,747 barrels crude oil terminal at offshore Akwa Ibom state within the waters of the exclusive economic zone Nigeria,” he said.
“Belema Sweet Export Terminal Limited to establish a 2,000,000 barrels crude oil terminal at 20 nautical miles of Kula southern part of exclusive economic zone Nigeria.”
Ahmed said following the issuance of the licences, terminal establishment notices will be published in the federal government gazette.
Speaking at the signing ceremony, Tien Jack-Rich, president and founder, Belema Oil Producing Limited, said the facilities would generate over $11bn annually for Nigeria.
He added that Belema Oil would work diligently to get its terminal ready within six months.
