May 25, 2024

Operator of OML 55 begins construction of Belema Sweet Export Terminal in Kula, as an alternative to Bonny 

Oredola Adeola


After many years of persistent attacks on Trans Niger Pipeline (TNP) which transports an average of 180,000 barrels per day to Bonny Export Terminal, Belemaoil Producing Limited, operator of the NNPC/BPL OML 55, Joint Venture has revealed plan to begin the construction of the Belema Sweet Crude Export Terminal which will be located in Kula community of Rivers State, as an alternative crude oil export route.

This was confirmed in a statement released by Belemaoil Producing Limited and seen by EnergyDay at the weekend.


According to the indigenous oil company, the project which will be located at Robertkiri, one of the production fields of OML-55 in Kula, Akukutoru Local Government Area of Rivers State, is expected to make a significant contribution to the Nigerian economy.


The company said, “The Belema Sweet Export Terminal sited at the tip of the Atlantic Ocean between Rivers and Bayelsa states, was designed to change the narrative and ensure there is effective utilization and increased value for owners of OML-55 & her Neighbourhood Assets (OML 18, 23, 24 & 25).


“From the construction, commissioning, and production phases, the Belema Sweet Crude Export Terminal shall be a center of opportunities for the creation of jobs, business, and community development.


“It is also expected to provide job opportunities for the locals and stimulate business activities in the area, in addition to providing training and development opportunities for the people in specialized fields of oil and gas development, thereby contributing to community development and capacity building.


“This state-of-the-art facility promises to be a major driver of future development in the region and a gateway to increased value for all stakeholders. With its advanced technology and commitment to sustainability, the Belema Sweet Crude Export Terminal represents a new era of growth and prosperity for our company and the communities we serve,” the statement noted.

Mr. Samuel Abel-Jumbo, Manager, External Relations and Corporate Affairs, at Belemaoil, disclosed that the idea of the alternative export terminal was conceived by Engr. Tein Jackrich, the founder of Belemaoil Producing Limited.


“The proposed export terminal is a huge asset and has huge benefits because Bonny has only one OML whereas Kula has about six. All operators in that area would have to export through Belema Sweet (terminal),” Abel-Jumbo revealed.

Vincent Ajiro, Chief Executive Officer of Ajivin Nigeria Limited, the Lead Consultant in charge of the project, said that Nigeria has lost about 5.5 billion barrels of crude from June 2016 to April 2022.

He said, “The terminal will stop the crude oil losses because the OMLs 55,24, 25,23, 18, and 29 will begin to export crude oil. It will also process 50mscf per day of SPG (condensate) and CNG and fertilizer.

“Instead of evacuating crude oil productions from OML 55 to Bonny Terminal again and incur 80 percent of losses of oil that pass through the channel to illegal refiners, the Belema sweet export terminal would prevent damages and give room to other assets within the area.


“The terminal is geared to change the narrative, it will prevent losses and ensure we get value from our resources, which can be used to further develop the community and Nigeria as a whole.


“Before now, the production goes to the Bonny Terminal through the Nembe Creek Trunkline but because of sabotage, theft, and inaccuracies, there have been losses, so there is no point losing value through transportation when it is possible to export crude from Kula.


“Our target is to have about 80-million-barrel storage capacity in the next few years in Kula, but we are starting with one million capacity and then move on to nine million capacity storage. The pipeline will come from Robertkiri base to the export terminal at Agudamakiri.


There will be crude oil and gas production. There will be an 18-inch pipeline running some 15 km. Kula will have full and regular power supply free like Bonny. The loading bay will be completed in December 2023, if things go according to plan.” the project’s lead consultant said.


EnergyDay gathered that President Muhammadu Buhari, in 2016 approved, the request of Belemaoil Producing Limited to establish the crude oil export terminal in Kula, as part of the commitment of the government to grant the right to indigenous operators to function effectively within the oil and gas industry.