Nigeria launches new Nembe oil grade and new terminal
ABUJA, November 10, 2023 – Nigeria has launched a new grade of crude oil as it ramps up oil and gas production, Reuters reported on Wednesday.
The new Nembe grade has a low sulphur content and holds a premium over the Brent crude benchmark.
Nigerian NOC NNPC and oil and gas entity Aiteo Eastern E&P Company will market the new Nembe crude oil grade through a joint venture.
This marks the first time for a crude marketing project run solely by Nigerian companies.
Nembe oil is produced from the recently on line OML 29 block, with two cargoes of 950,000 barrels of oil each and 1.2 bcf of gas exported per month.
According to Reuters the oil is bound for France and the Netherlands.
Previously production had been constrained due to security issues in the Nembe Creek Trunk Line corridor.
Aiteo Eastern E&P Company operates the onshore OML 29 concession alongside NNPC.
The launch of the new oil grade coincides with the opening of Nigeria’s Nembe Crude Oil Export Terminal.
The facility consists of an FSO with a storage capacity of 2 million barrels that can offload oil to export tankers.
Previously the Nembe grade was blended with Bonny Light grade and exported via the Bonny Oil & Gas Terminal.
Nigeria has ramped up production in recent months to around 1.5 million bopd, up from 1.39 million bopd in September 2023 and is targeting production of 1.8 million bopd by the end of 2023.
Nigeria remains Africa’s top oil producer.
In September 2023, NNPC signed an agreement with partnered oil majors to cut deadlines on contract negotiations from three years to six months.