“Such a Good Grade”: FG Discovers New Type of Crude Oil in Bayelsa Village, Begins Sale to Europe

• Nigeria has discovered a new type of crude oil grade in Nembe with high-value product production
• European countries' refineries have shown interest in the newfound crude oil as it contains low-sulfur
• The latest discovery in Nembe, Bayelsa, now takes the total number of oil grades peculiar to Nigeria to six

Dave Ibemere has over a decade of experience covering tech, energy, stocks, investments, and the economy

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.

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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

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• 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.

Why Dangote refinery is delaying production as five modular refineries take off

Earlier, Legit.ng reported that the failure to supply crude oil to domestic refineries, including the Dangote Refinery, delayed production.

The development comes as the Dangote Refinery failed to meet its October production deadline.

This is the second time the refinery has missed its production date in 2023 since it was commissioned on May 22, 2023.

Source: Legit.ng