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NNPC Limited, Aiteo JV activate Nembe new crude oil grade

Malam Mele Kyari, Group CEO of NNPC Limited

*The Nigerian National Petroleum Company Limited affirms the remarkable achievement has signalled the commencement of activities at the country’s newest crude oil terminal ─ Nembe Crude Oil Export Terminal ─ duly licensed in line with the extant laws and Crude Oil Terminal establishment regulations

Alexander Davis | ConsumerConnect

The Nigerian National Petroleum Company Limited (NNPC Limited) has announced the introduction of Nembe Crude Oil Grade, a new crude oil grade into the international crude oil market.

ConsumerConnect reports the state oil company made the announcement of the Nembe crude blend produced by Aiteo, the Operator of the NNPC/Aiteo Oil Mining Lease (OML) 29 Joint Venture (JV), Tuesday, Novemeber 7, 2023, at the Argus European Crude Conference, in London, in the United Kingdom (UK).

OML 29, an asset located onshore Nigeria, is operated by Aiteo Eastern Exploration and Production Limited, Africa’s leading indigenous hydrocarbon producer, following a historic acquisition from Shell in 2014.

Olufemi Soneye, Chief Corporate Communications Officern of NNPC Limited, in a statement Wednesday, also disclosed that the Nembe crude was previously blended with the popular Bonny Light grade and exported via the Bonny Oil and Gas Terminal.

Soneye said the Unique Selling Point (USP) of the Nembe grade with an API gravity was highlighted by both the Aiteo E & P and NNPC Limited Leadership at the Argus Conference in London.

The NNPCL further stated: “The Nembe Crude Oil grade also has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.

“Two cargoes of 950,000 barrels each of the Nembe Crude Oil grade have since been exported to France and the Netherlands.”

The Company said: “With its attractive Assay of API 29 and low sulphur content, the Nembe Crude Oil grade commands a premium to the global Brent benchmark.

“With the NNPC-Aiteo OML 29 JV back onstream, Nigeria now boasts of an additional crude oil export of two Cargoes at 950,000 barrels each per month and 1.2 Bcf of export gas monthly.”

According to NNPC Limited, this remarkable achievement signalled the commencement of activities at Nigeria’s newest crude oil terminal, the Nembe Crude Oil Export Terminal (NCOET), which was licensed in line with the extant laws and Crude Oil Terminal establishment regulations.

The terminal was conceived as a Floating Storage and Offloading Vessel (FSO) with a storage capacity of two million barrels and the ability to offload crude oil to any export tanker from AFRAMAX to Very Large Crude Carriers (VLCC).

“It has a loading capacity of 25,000 barrels per hour and will be exporting over 3.6 million barrels of Crude oil monthly at full scale of operation,” stated Soneye.

He as well noted that currently, hydrocarbon production from OML 29, which was hitherto constrained due to evacuation challenges owing to the security issues around the Nembe Creek Trunk Line (NCTL) corridor, had been debottlenecked.

This, he said, was through a collaborative and creative approach that led to the innovation of the Alternative Crude Oil Evacuation Solution.

The Argus European Crude Conference 2023 holding in London, is a gathering of energy majors, refiners, NOCs, traders, financial institutions, and other representatives from across the global oil markets.

The event also provides a critical opportunity for business leaders to connect, discuss, share and learn from one another, said the company.

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