The nation’s revenue is expected to experience a boost of at least $50 million monthly.
This is a sequel to the takeoff of the Belema sweet crude terminal in Kula Kingdom in Akuku-Toru Local Government Area of Rivers State, an oil and gas expert, Dr. Vincent Ajilo, has disclosed.
The Sweet crude terminal of OML 55, The Guardian gathered, has two-million barrel storage capacity, which will enable production of 100,000 barrels of crude oil per day.
Accordingly, this will lead to a monthly export production of 950,000 barrels of crude oil from the corridor.
Dr. Ajilo, a technical consultant to Belema Sweet Export Terminal Ltd, stated this alongside other stakeholders during the presentation of the Environmental Impact Assessment report of the terminal carried out by the Federal and State Ministries of Environment at the weekend in Port Harcourt.
Ajilo affirmed that government will generate huge revenue of about $50 million monthly if crude oil is sold at a minimum of 50 dollars per barrel.
He explained, “What we are doing is to provide a long-term solution to crude evacuation, which will enable the production of the assets. Some of the assets were shut down due to the vandalism of Nembe Creek trunkline, which used to be the initial evacuation line.”
“The project is coming to solve that problem as well as provide opportunities for other assets within the corridor. It is nice because it accommodates the needs of the environment and will boost economic development in Kula Kingdom.”
Recall that Kula is a kingdom that houses a lot of oil and gas assets but the communities are impoverished, lacking basic needs like hospitals, electricity, water, among others.
Dr. Ajilo assured that through the project, electricity, hospitals, and job opportunities will be provided for the people.
He said, “This will increase the nation’s revenue generation because with the 100,000 barrels of crude oil per day, that will lead to at least one month’s export production, which is about 950,000 barrels of crude oil, which will be exported on a monthly basis from that corridor. If crude oil is sold at a minimum of 50 dollars per barrel, that is a huge revenue to the government, almost $50 million on a monthly basis, and NNPCL is a JV asset and one of the beneficiaries.”
Also speaking, Vice President of Belemaoil Producing Limited, Eze Collins Amadi, said developing a terminal takes lots of processes, stating that the firm is working to meet all the required regulatory measures.
He said, “After the approval of the project, next is to start implementing the schedules. When it kicks off, the Kula communities will be involved in the process and everyone who needs to be involved will be engaged.”
He explained that the project was supposed to take off in 2023 but due to several processes involved, it is now expected to kick off this year, 2025.
Representative of the Rivers State Ministry of Environment, Dr. Ibifaa Kio, urged the firm to map out measures and timelines towards addressing some eventualities and needs of the communities.
He said, “You need to put in key mitigation measures in case of oil spill, vandalism, and all the potential impacts on the environment.
“Provisions of electricity, jobs, hospitals for the host communities need to have timelines. Women should be carried along. Consider those that rely on the sea for their sea goods.”
A chief in Kula Community, Anabs Sarah-Igbe, lamented many years of neglect on Kula Communities despite its huge economic resources and called for more intentional approaches to providing basic amenities for the people.
PHOTO: Energy expert, Dr. Vincent Ajilo with management of Belemaoil Producing Ltd during the report presentation of the Environmental Impact Assessment on the Sweet crude terminal, OML 55.