The NNPC/Aiteo Joint Venture has officially launched the Nembe Crude Oil Grade, marking the introduction of a new Nigerian crude blend into the global oil market. The announcement was made at the Argus European Crude Conference 2023 in London, solidifying Aiteo’s position as a key player in Africa’s energy sector.
A Major Milestone for Nigeria’s Oil Industry
The Nembe Crude Oil Blend, produced by Aiteo Eastern Exploration & Production Ltd, is sourced from Oil Mining Lease (OML) 29, a prime onshore asset in Nigeria. Aiteo, Africa’s leading indigenous hydrocarbon producer, has operated the asset since acquiring it from Shell in 2014.
Historically, crude from OML 29 was blended with Bonny Light and exported via the Bonny Oil & Gas Terminal. However, with its distinct qualities, Nembe Crude has now been established as a standalone export grade.
Key Features of Nembe Crude Oil Grade
The Nembe Crude Oil Grade stands out due to its:
•API gravity of 29, making it attractive to refiners.
•Low sulfur content, meeting the growing demand for cleaner fuels.
•Minimal carbon footprint, thanks to flare gas elimination.
These characteristics align with the requirements of European refiners, boosting its global market value.
First Shipments to France & the Netherlands
As part of its market entry, two 950,000-barrel cargoes of Nembe Crude have already been exported to France and the Netherlands. Given its high-quality assay and low sulfur content, Nembe Crude commands a premium to the global Brent benchmark.
With the NNPC-Aiteo OML 29 JV fully back on stream, Nigeria’s crude oil exports have now expanded by:
•Two cargoes of 950,000 barrels per month
•1.2 billion cubic feet (Bcf) of export gas monthly
The Nembe Crude Oil Export Terminal (NCOET)
This milestone also signals the operational launch of Nigeria’s newest crude oil export terminal – the Nembe Crude Oil Export Terminal (NCOET). Licensed under Nigerian crude oil terminal regulations, NCOET is a Floating Storage and Offloading Vessel (FSO) designed to handle large-scale crude exports.
Key Specifications of NCOET:
•Storage capacity: 2 million barrels
•Loading capacity: 25,000 barrels per hour
•Export capacity: 3.6 million barrels monthly at full scale
•Tankers handled: From AFRAMAX to Very Large Crude Carriers (VLCCs)
Overcoming Security Challenges & Expanding Nigeria’s Oil Exports
OML 29 has faced evacuation challenges due to persistent security threats along the Nembe Creek Trunk Line (NCTL). However, through a collaborative and strategic approach, Aiteo has successfully implemented the Alternative Crude Oil Evacuation Solution, removing bottlenecks and restoring full-scale production.
This development strengthens Nigeria’s position in the global oil market, increasing export capacity and driving economic growth.
The Argus European Crude Conference 2023 in London served as the perfect platform for this announcement, bringing together global energy leaders, refiners, oil traders, and financial institutions to discuss the future of the oil industry.
With the successful launch of the Nembe Crude Oil Grade, Aiteo and NNPC are reinforcing their commitment to expanding Nigeria’s crude exports, optimizing production, and driving energy innovation across the continent.
