The Nigerian National Petroleum Company (NNPC) Limited has officially launched the Nembe crude oil grade, marking a significant milestone for the country’s oil industry.
This groundbreaking development was announced during the prestigious Argus European crude conference in London. Spearheaded by NNPC and Aiteo, operators of the NNPC-Aiteo oil mining lease (OML) 29 joint venture (JV), the introduction of Nembe crude oil promises to revolutionize Nigeria’s oil export dynamics.
Unveiling Nembe Crude Oil Grade
NNPC highlighted that the Nembe crude oil emanates from OML 29, situated onshore in Nigeria. The operations of this asset are overseen by the indigenous operator Aiteo E&P, following Shell’s divestment from the asset.
Formerly blended with the Bonny Light grade, the Nembe crude will now be independently exported through the newly established Nembe Crude Oil Export Terminal (NCOET), boasting impressive specifications tailored to meet the demands of major buyers in Europe.
The Unique Selling Points of Nembe Crude Oil
During the side event at the Argus Conference, key representatives from Aiteo E&P and NNPC emphasized the outstanding features of the Nembe Crude Oil grade. With an API of 29, a low sulphur content, and a reduced carbon footprint attributed to flare gas elimination, this grade perfectly aligns with the stringent requirements set by European buyers.
The successful commencement of operations at the NCOET, designed as a Floating Storage and Offloading Vessel (FSO) with a storage capacity of two (2) million barrels, further amplifies Nigeria’s crude oil export capabilities.
Overcoming Evacuation Challenges
The recent unveiling of the Nembe crude oil grade also signifies a significant breakthrough in addressing the longstanding evacuation challenges faced by hydrocarbon production from OML 29.
Thanks to a collaborative and innovative approach, spearheaded by NNPC Limited, the operator, and industry regulators, a feasible Alternative Crude Oil Evacuation Solution has been developed. This strategic collaboration exemplifies the potential unlocked through effective cooperation and transparent communication between stakeholders.
Global Implications and Export Highlights
NNPC proudly announced the successful export of two cargoes, each containing 950,000 barrels of the highly sought-after Nembe crude oil grade, to France and the Netherlands.
The premium commanded by the Nembe Crude Oil grade, owing to its alluring Assay of API 29 and low sulphur content, positions Nigeria favorably in the competitive global oil market. With the NNPC-AITEO OML 29 JV back in full swing, Nigeria’s oil exports are expected to increase significantly, with a projected monthly export of 2 cargoes, each containing 950,000 barrels, and 1.2 Bcf of export gas.
A Promising Future
Looking ahead, NNPC anticipates the completion of a planned subsea pipeline, a critical milestone that will facilitate a substantial increase in the production and export of the Nembe crude from OML 29, ultimately reaching an impressive monthly export capacity of 3.6 million barrels. This expansion solidifies Nigeria’s position as a key player in the global oil market and reaffirms the country’s commitment to innovation and sustainable energy solutions.
In summary, the introduction of the Nembe crude oil grade represents a significant leap forward for Nigeria’s oil industry, showcasing the country’s potential for growth and development within the global energy landscape. With collaborative efforts, innovation, and strategic investments, Nigeria is poised to establish itself as a formidable force in the international oil market.
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