NNPCL Unveils New Crude Grade ‘Nembe’ and Ships 1.9 Million Barrels in October
The Nigerian National Petroleum Company Limited (NNPCL) is making significant strides in the country’s oil sector. In October, NNPCL introduced a new crude oil grade known as ‘Nembe’ and successfully shipped its first cargo consisting of two shipments, each carrying 950,000 barrels. This development marks a positive step in Nigeria’s ongoing efforts to enhance its crude oil production and global market presence.
In this article, we’ll delve into the details of this exciting announcement and explore the implications of Nembe’s entry into the market.
Unveiling Nembe Crude Grade
The executive director of crude and condensate at NNPC Trading, Maryamu Idris, shared this milestone at the Argus European Crude conference in London. She reported that the initial cargoes of Nembe crude grade were sold to France and the Netherlands. Nembe crude exhibits similarities to other distillate-rich Nigerian grades, including Forcados, Bonga, and Egina.
A Premium-Grade Crude
Nembe stands out as a low-sulfur grade that commands a premium price compared to the global Brent benchmark. This quality makes it highly competitive with Brazilian and Azeri crude grades for European refiners. Its entry into the market is significant for Nigeria’s energy sector and the global crude oil industry.
Production Targets
Currently, Nembe production averages around 50,000 barrels per day, a promising start for this new grade. NNPCL has set ambitious production targets, aiming to increase output to 80,000 barrels per day by the first quarter of the next year and further to 150,000 barrels per day by the beginning of 2025. Achieving these targets will bolster Nigeria’s position as a key player in the international oil market.
A Rebounding Industry
The launch of Nembe crude follows the impressive rebound in Nigeria’s crude oil production. After hitting a low of 900,000 barrels per day in September, the country’s daily oil production has surged to 1.3 million barrels per day last month. This resurgence is a testament to the efforts made by NNPCL and the Nigerian petroleum industry to revitalize oil production.
Meeting Ambitious Goals
During the 41st conference of the Nigerian Association of Petroleum Explorationists, Chairman of AA Holdings, Austin Avuru, highlighted the need for substantial investments to achieve the goal of 3 million barrels per day crude oil production. He emphasized that the Federal Government would require an annual investment of approximately $21 billion to fund oil exploration and reach this production target by 2027.
As Nigeria continues to advance its oil production capabilities and introduce high-quality crude grades like Nembe, the nation is positioning itself as a formidable player in the global energy sector.
Stay Updated
To stay informed about the latest developments in the Nigerian petroleum industry and NNPCL’s initiatives, visit the official NNPCL website. You can also follow them on LinkedIn for regular updates and insights.
