Toba Owojaiye Reporting from Abuja, Nigeria
The NNPC/Aiteo Joint Venture proudly announces the addition of Nembe Crude Oil Grade to the global crude oil market. The collaboration between the Nigerian National Petroleum Company Limited (NNPC) and Aiteo has given rise to this exciting development, signifying a new chapter in the world of crude oil.
On Wednesday, November 8, the official statement was issued, bearing the signature of Olufemi Soneye, Chief Corporate Communications Officer of NNPC Limited. This groundbreaking introduction took place on Tuesday, November 7, and it was unveiled at the Argus European Crude Conference in London.
The Nembe Crude Oil Blend, produced by Aiteo, is a product of the NNPC/Aiteo Oil Mining Lease (OML) 29 Joint Venture (JV). OML 29, situated onshore in Nigeria, is operated by Aiteo Eastern Exploration and Production Limited, a prominent indigenous hydrocarbon producer, following a significant acquisition from Shell in 2014.
Historically, the Nembe Crude was blended with the well-known Bonny Light grade and transported via the Bonny Oil & Gas Terminal. What makes the Nembe Crude Oil grade unique is its API gravity, which was highlighted as a key selling point by both Aiteo E & P and NNPC Limited Leadership at the Argus Conference in London.
The Nembe Crude Oil grade boasts a low sulfur content and a reduced carbon footprint, owing to the elimination of flare gas. These characteristics make it an ideal match for the specifications sought after by major buyers in Europe. Notably, two cargoes, each consisting of 950,000 barrels of Nembe Crude Oil grade, have already been dispatched to France and the Netherlands.
With an API gravity of 29 and its low sulfur content, the Nembe Crude Oil grade commands a premium compared to the global Brent benchmark. This remarkable achievement marks the return of the NNPC-Aiteo OML 29 JV, demonstrating its resilience and excellence.
Moreover, Nigeria has reached a significant milestone with the inauguration of the Nembe Crude Oil Export Terminal (NCOET), a new avenue for the country’s crude oil exports. This operational facility comprises a Floating Storage and Offloading Vessel (FSO) with an impressive storage capacity of two million barrels.
The NCOET not only enhances the country’s export capabilities but also permits the loading of two cargoes, each containing 950,000 barrels, along with an additional 1.2 billion cubic feet (Bcf) of export gas every month. This venture adheres to all regulatory standards and complies with the laws and regulations governing crude oil terminals.
The design of the terminal allows for the transfer of crude oil to various types of export tankers, ranging from AFRAMAX to Very Large Crude Carriers (VLCC), with loading capacities of 25,000 barrels per hour. When the NCOET reaches its full operational capacity, it is projected to export over 3.6 million barrels of crude oil every month.
This significant advancement follows the successful debottlenecking of hydrocarbon production from OML 29, effectively resolving previous constraints related to evacuation challenges, particularly around the Nembe Creek Trunk Line (NCTL) corridor. Innovative problem-solving methods have led to the establishment of the Alternative Crude Oil Evacuation Solution, which ensures smoother evacuation and unlocks the production potential of OML 29 that was previously hindered by security issues.
In summary, the introduction of Nembe Crude Oil Grade by the NNPC/Aiteo Joint Venture is a remarkable development in the global crude oil market. This high-quality crude oil grade, with its exceptional API gravity, low sulfur content, and minimal carbon footprint, is set to be a premium offering for major buyers in Europe. The launch of the Nembe Crude Oil Export Terminal further elevates Nigeria’s position in the international crude oil export industry, showcasing the country’s increased export capabilities and adherence to regulatory standards. The successful resolution of evacuation challenges and the establishment of the Alternative Crude Oil Evacuation Solution are testaments to the joint venture’s commitment to innovation and excellence in the industry.