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Business News of Wednesday, 8 November 2023


'It's so good' - NNPC discovers new type of crude oil in Bayelsa village, Europe shows interest

Crude oil Crude oil

The Nigerian National Petroleum Company Limited (NNPCL) has launched a new crude oil grade called 'Nembe' discovered in Nembe, Bayelsa state.

Nembe oil is similar to other Nigerian distillate-rich grades such as Forcados, Bonga and Egina as it is light, sweet crude oil with a low sulfur content.

Also, Nembe oil is well-suited for producing gasoline and other high-value products, and it is desirable to the European market.

NNPC's new crude oil grade

Maryamu Idris, the executive director of crude and condensate at NNPC Trading, told Reuters that the first cargoes of two 950,000 barrels of the new grade were sold to France and the Netherlands in October 2023.

Her words: "The low-sulphur grade commands a premium to the global Brent benchmark. It is such a good grade that can compete with Brazilian and Azeri crude grades for European refiners."

NNPCL plans to increase crude oil production, currently around 50,000 barrels per day, to 80,000 barrels per day by the first quarter of next year and 150,000 barrels per day by the start of 2025, Punch reports.

Here are other key things to know about Nembe oil

Nembe crude is produced by Aiteo, Nigeria's largest indigenous oil producer.

It is produced from the Nembe Creek Trunk Line (NCTL), which is a major oil pipeline in the Niger Delta.

Nembe crude is of very high quality, and the grade is expected to become increasingly popular with refiners in the European market in 2024 and beyond.

The new crude will provide Nigeria with a new source of revenue It will also help to diversify the country's crude oil exports.