In a pivotal move, the NNPC-Aiteo OML 29 Joint Venture (JV) unveiled the Nembe crude oil grade at the Argus European Crude Conference in London. This announcement follows a productive OPEC and Non-OPEC meeting that resulted in crude oil prices reaching $65.85 per barrel.
Aiteo E&P, an indigenous operator, manages the production of Nembe crude from OML 29, a legacy asset once run by Shell. According to Maryamu Idris, NNPC Trading’s Executive Director of Crude and Condensate, Nembe shares characteristics with Nigeria’s distillate-rich Forcados, Bonga, and Egina grades.
The JV team and NNPC Limited leadership presented Nembe Crude Oil’s distinctive qualities at a conference event. With an API of 29, low sulphur content, and reduced carbon emissions due to flare gas elimination, Nembe crude is set to meet the stringent demands of European buyers.
Nigeria’s newest crude oil terminal, the Nembe Crude Oil Export Terminal (NCOET), is ready to commence operations. This innovative Floating Storage and Offloading Vessel (FSO) touts a significant two million barrels storage capacity and can transfer crude at 25,000 barrels per hour, gearing up to export over 3.6 million barrels monthly.
This development alleviates the previously constrained hydrocarbon production from OML 29, which suffered from security challenges around the Nembe Creek Trunk Line (NCTL). The joint efforts of NNPC Limited, the operator, and industry regulators have successfully implemented an Alternative Crude Oil Evacuation Solution.
Demonstrating the power of collaboration, this initiative reflects the potential for progress with critical thinking and open communication.
In related news, two shipments totaling 1.9 million barrels of Nembe Crude have been dispatched to France and the Netherlands. This grade, with its competitive quality, is already commanding a premium over the global Brent benchmark.
With the reactivation of the NNPC-AITEO OML 29 JV, Nigeria anticipates an increase in its crude oil exports, contributing 1.9 million barrels and 1.2 billion cubic feet of gas monthly. Additionally, the planned subsea pipeline is expected to boost Nembe Crude production to 3.6 million barrels per month.
The Argus European Crude Conference stands as a crucial congregation point for industry leaders from energy majors to financial experts, emphasizing the rapidly evolving crude market and Europe’s integral role in global oil trade dynamics.
