Tein Jack-Rich’s Belema Oil, NNPC Pick New Oil Export Terminals Licences
The Federal Government has issued licences to the NNPCL Exploration and Production Ltd and Belema Sweet Export Terminal Ltd for the establishment of crude export terminals.
The licences were approved and issued to the companies on Tuesday in Abuja by the Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed.
The NNPCL E&P Ltd operates Utapate Export Terminal, located in Akwa Ibom State while the Belema Sweet Export Terminal Ltd –a Subsidiary of Belema Oil Producing Ltd. owned by oil magnate, Mr. Tein Jack-Rich– is located in Rivers State.
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, 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 pursuant to the provisions of the Petroleum Industry Act (PIA 2021) which stipulated new provisions for the establishment of new export terminals.
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, Modibbo Ahmed, who received the license on behalf of the NNPC Ltd disclosed that the crude oil terminal would be operational within three months.
According to him, the NNPC 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 a high-breed terminal.
Jack-Rich said the terminal had the capacity to 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 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 the 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 the project to establish a mini refinery to refine excess capacity for local consumption,’’ he said.
(NAN)
