The Nigerian National Petroleum Company (NNPC) Limited has unveiled a new grade of crude oil called “Nembe,” specially tailored for the European market. This move is part of Nigeria’s effort to enhance its crude production.
Nembe production was previously blended with the Bonny Light stream over three years ago. However, due to sabotage on the Nembe Creek Trunk Line (NCTL), its output was affected. Now, Nigeria has successfully reinstated Nembe as a separate grade, and the first cargoes of Nembe were sold in October.
The Nembe crude grade is similar to Nigeria’s other distillate-rich grades like Forcados, Bonga, and Egina. It is low in sulfur content and commands a premium to the global Brent benchmark, making it a competitive option for European refiners compared to Brazilian and Azeri crude grades.
Currently, Nembe production stands at around 50,000 barrels per day, but NNPC is aiming to increase it to 80,000 by the first quarter of the next year and further to 150,000 barrels per day by the beginning of 2025. Nigeria’s overall crude production has been on the rise, and the country aims to reach approximately 1.8 million barrels per day by the end of 2023.
Additionally, NNPC is preparing to supply the Dangote oil refinery with up to six cargoes of crude oil in December for test runs. This refinery, being built by Aliko Dangote, is anticipated to process crudes with an API gravity of 29 to 34 degrees, and Nembe, with an API gravity of 29, fits this specification.