Nigeria’S Nembe Crude Oil Grade Makes Waves In European Market
The Nigerian National Petroleum Company Limited (NNPCL) Recently Made A Big Announcement About The Introduction Of Nembe Crude Oil Grade Into The International Crude Oil Market. This New Blend, Produced By Aiteo, The Operator Of The NNPC/Aiteo Oil Mining Lease (OML) 29 Joint Venture (JV), Was Unveiled At The Argus European Crude Conference In London Last Week Tuesday.
OML 29, An Asset Located Onshore Nigeria, Is Operated By Aiteo Eastern Exploration & Production Ltd, Africa’s Leading Indigenous Hydrocarbon Producer, Following A Historic Acquisition From Shell In 2014. The Introduction Of The Nembe Crude Oil Blend Comes At A Time When Many European Countries Are Seeking Crude Oil Products That Align With Their Market Preference, Especially Due To The Ongoing Conflict Between Russia And Ukraine.
The Move By The NNPC To Introduce The Nembe Crude Oil Grade Is A Significant Development For Nigeria, As It Will Help Diversify The Country’s Crude Oil Exports And Reduce Its Reliance On A Few Key Grades. Before The Export Of Nembe Crude, Nigeria’S Crude Oil Grades Included Bonny Light, Qua Iboe, Forcados, Brass River, And Escravos. However, The Unique Selling Point Of The Nembe Crude Oil Grade Is Its Low Sulphur Content And Low Carbon Footprint Due To Flare Gas Elimination, Making It A Perfect Fit For Major Buyers In Europe.
Already, About 950,000 Barrels Of The Nembe Crude Oil Grade Have Been Exported To France And The Netherlands, Commanding A Premium To The Global Brent Benchmark. This Achievement Signals The Commencement Of Activities At Nigeria’s Newest Crude Oil Terminal, The Nembe Crude Oil Export Terminal (NCOET), Which Has A Storage Capacity Of Two Million Barrels And The Ability To Offload Crude Oil To Any Export Tanker From AFRAMAX To Very Large Crude Carriers (VLCC).
The Acceptance Of The Nembe Crude Oil Grade In The European Market Is Expected To Boost Nigeria’S Revenue From Oil, Thereby Enhancing The NNPC Limited’s Ability To Guarantee Energy Security For The Nation. This Is A Remarkable Win For Nigeria And A Testament To The Country’S Growing Influence In The Global Crude Oil Trade.
Mele Kyari, The Group Chief Executive Officer Of The NNPC Limited, Has Played A Pivotal Role In Implementing Reforms To Rejuvenate The Business Landscape And Re-Position NNPC Limited To Adopt A More Commercial Approach To The Management Of The Nation’s Hydrocarbon Resources. Under His Leadership, NNPC Limited Has Secured Vital Partnerships With Notable Financial Institutions To Promote Upstream Investments And Address Security And Environmental Challenges In The Niger Delta.
The Collaboration With Operators To Co-Create Unique Solutions To Challenges, Along With The Acceptance Of The Nembe Crude Oil Grade In The European Market, Has Led To A Significant Increase In Nigeria’S Crude Oil And Condensate Output. This Positive Development Is A Testament To The Resilience And Determination Of Nigeria’S Oil And Gas Industry.
In Conclusion, The Acceptance Of The Nembe Crude Oil Grade In The European Market Is A Game-Changer For Nigeria, Opening Up New Opportunities And Revenue Streams. It Is A Clear Indication Of Nigeria’S Ability To Adapt To Changing Market Dynamics And Solidify Its Position As A Key Player In The Global Crude Oil Trade.
Ifeanyi Onuba, A Chartered Accountant, Writes From Abuja