The NNPC/Aiteo Joint Venture has officially introduced the Nembe Crude Oil Grade, a new addition that promises to make waves on the international stage.
The announcement was made during the ongoing Argus European Crude Conference in London, showcasing the collaborative efforts of the Nigerian National Petroleum Corporation (NNPC) and Aiteo in diversifying their crude oil offerings.
According to a statement by Olufemi O. Soneye, the Chief Corporate Communications Officer, NNPC Ltd., Nembe Crude Oil Grade, produced by Aiteo, operates under the NNPC/Aiteo Oil Mining Lease (OML) 29 Joint Venture (JV). This lease, located onshore Nigeria, has been under the capable management of Aiteo Eastern Exploration & Production Ltd since their historic acquisition from Shell in 2014.
Previously, the Nembe Crude was blended with the well-known Bonny Light grade and exported via the Bonny Oil & Gas Terminal. What sets the Nembe Crude Oil Grade apart is its unique selling points, including an API gravity that has garnered the attention of both Aiteo E & P and NNPC Limited leadership at the Argus Conference.
Furthermore, this grade boasts a low sulfur content and an environmentally friendly low carbon footprint, achieved through the elimination of flare gas. These qualities align perfectly with the specifications of major buyers in Europe, making it an attractive addition to the market.
Already, two cargoes of 950,000 barrels each of the Nembe Crude Oil Grade have been exported to France and the Netherlands, establishing its foothold in the international market. With an API gravity of 29 and low sulfur content, the Nembe Crude Oil Grade commands a premium over the global Brent benchmark.
With the NNPC-Aiteo OML 29 JV back onstream, Nigeria has now increased its crude oil exports with two cargoes of 950,000 barrels each per month and 1.2 Bcf of export gas monthly. This achievement marks the commencement of operations at Nigeria’s newest crude oil terminal, the Nembe Crude Oil Export Terminal (NCOET), which has been licensed in accordance with existing laws and crude oil terminal establishment regulations.
The NCOET was conceptualized as a Floating Storage and Offloading Vessel (FSO) with a substantial storage capacity of two million barrels and the capability to offload crude oil to any export tanker, ranging from AFRAMAX to Very Large Crude Carriers (VLCC). With a loading capacity of 25,000 barrels per hour, the terminal is set to export over 3.6 million barrels of crude oil each month at full scale of operation.
This achievement signifies the debottlenecking of hydrocarbon production from OML 29, which had been constrained due to evacuation challenges stemming from security issues around the Nembe Creek Trunk Line (NCTL) corridor. The collaboration and innovative thinking behind the Alternative Crude Oil Evacuation Solution have successfully resolved this issue, ensuring the smooth flow of oil.
The Argus European Crude Conference 2023 in London serves as a crucial gathering for energy majors, refiners, NOCs, traders, financial institutions, and representatives from across the global oil markets. It provides an essential platform for business leaders to connect, discuss, share insights, and learn from one another.
The introduction of the Nembe Crude Oil Grade is a testament to the innovative spirit of NNPC and Aiteo, offering a high-quality, environmentally friendly crude oil option to the international market and further bolstering Nigeria’s position as a key player in the global energy landscape.