The NNPC-Aiteo OML 29 Joint Venture (JV) took centre stage at the ongoing Argus European Crude Conference in London when it announced the introduction of the Nembe Crude Oil Grade to the market.
The Nembe crude oil is produced from OML 29 onshore Nigeria. Aiteo E&P, an indigenous operator, took over management of the asset from Shell after their divestment from it.
The Nembe Crude was previously blended with the popular Bonny Light grade and exported via the Bonny Oil & Gas Terminal.
A delegation from both the Aiteo E&P executives and the NNPC Limited leadership highlighted the distinctive selling point of the Nembe crude oil grade as a side event to the Argus Conference. With an API of 29, low sulphur content, and a low carbon footprint due to flare gas elimination, it perfectly fits the requirements of major buyers in Europe.
This announcement also signals the commencement of activities at Nigeria’s newest crude oil terminal, the Nembe Crude Oil Export Terminal (NCOET), which was licenced 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).
The terminal 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.
This change makes it possible for hydrocarbon production from OML 29 to resume. Previously, it had been limited because of security concerns along the Nembe Creek Trunk Line (NCTL) corridor, which made it hard to evacuate. The Alternative Crude Oil Evacuation Solution, however, is the result of collaboration and creativity in finding a solution to this issue.
This achievement highlights the benefit of the strong collaboration of stakeholders, including NNPC Limited, the operator, and industry regulators, among others, to overcome challenges.
This is clearly a testament to what can be achieved with the right combination of critical thinking and open communication between stakeholders.
Two cargoes of 950,000 barrels each of the Nembe crude oil grade have already been exported to France and the Netherlands. 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 on stream, Nigeria now boasts an additional crude oil export of 2 cargoes of 950,000 barrels each per month and 1.2 Bcf of export gas monthly.
The completion of a planned subsea pipeline will enable the ramp-up of production of the Nembe Crude from OML 29 to 3.6 million barrels monthly.
About the Argus European Crude Conference
The crude industry is changing faster than ever before. As markets in Europe become more tied in with global crude oil trade, the Argus European Crude Conference 2023 in London provides a critical opportunity for business leaders to connect, discuss, share, and learn from one another.
The event welcomes energy majors, refiners, NOCs, traders, financial institutions, and other representatives from across the global oil markets.
