Lagos, Nigeria – The Nigerian National Petroleum Company Limited (NNPCL) announced on Tuesday the launch of a new crude oil grade named ‘Nembe’ and revealed that it successfully shipped its inaugural cargo in October, comprising two shipments of 950,000 barrels each.
According to a report by Reuters, Maryamu Idris, the executive director of crude and condensate at NNPC Trading, made the announcement during the Argus European Crude conference in London. Idris noted that the initial shipments of the newly introduced Nembe grade were sold to France and the Netherlands.
Similar to Distillate-Rich Grades: Nembe crude oil grade bears similarities to other distillate-rich grades such as Forcados, Bonga, and Egina. The low-sulfur grade commands a premium compared to the global Brent benchmark, making it an attractive option for European refiners, providing stiff competition to Brazilian and Azeri crude grades.
Production Targets: The current production level for Nembe stands at approximately 50,000 barrels per day, with the NNPCL setting ambitious goals for the coming years. They aim to increase production to 80,000 barrels per day by the first quarter of the next year and further boost it to 150,000 barrels per day by the beginning of 2025, according to insider sources.
Rising Crude Oil Production: This development occurs as part of the broader trend of increasing crude oil production in Nigeria. The country’s production has rebounded, rising from a low of 900,000 barrels per day in September to 1.3 million barrels per day last month.
Investment for Enhanced Production: In a related development, Austin Avuru, Chairman of AA Holdings, speaking at the Pre-Conference workshop of the 41st 2023 conference of the Nigerian Association of Petroleum Explorationists in Lagos, revealed that the Federal Government of Nigeria would require annual investments of approximately $21 billion to achieve its target of 3 million barrels per day in crude oil production by 2027. This investment will be directed toward funding oil exploration activities to meet the ambitious production goal.
The theme of the conference was ‘Unlocking Nigeria’s Remaining Energy Potential to Fuel Economic Growth and Diversification: Opportunities and Challenges,’ and it provided a platform to discuss the challenges and opportunities associated with the expansion of Nigeria’s energy sector to drive economic growth and diversification.