NNPCL Finally Gets Buyer, Set to Ship First Crude Cargo to Europe
- The NNPCL has finally found a major crude buyer and is getting set to ship the crude cargo in April
- The deal was concluded in March and has the same specifications as the earlier deal when NNPC shipped LNG last year
- Recall that just weeks ago, NNPC cargoes of crude were stranded at sea with no buyer
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
It is a sigh of relief for the federal government, as the Nigerian National Petroleum Corporation (NNPC) Limited has closed another breakthrough export deal.
The state-owned oil corporation is set to ship out its cargo to the customer in Europe this month, and data from TradeWind states that the crude is expected to be loaded between Wednesday, April 9, and April 10, 2025.
NNPC Shipping has already chartered the Greek owner Delta Tankers’ 164,000-dwt Meltemi I (built 2006), to load the crude for shipping.
Source: Getty Images
This will translate into more oil revenues for the federal government, a critical need for Nigeria, given the amount of loans and grants the government has had to depend on.
Speaking about the latest deal, the managing director of NNPC Shipping, Panos Gliatis, stated that the deal was concluded in March on an ex-ship basis, giving NNPC the responsibility to insure and ship the cargo.
This follows a similar deal done by the NNPC in August last year, when it shipped two Liquefied Natural Gas (LNG) shipments to Japan and China, Channels News reports.
To support its LNG trading and shipments to other countries, NNPCL had announced a joint venture with Stena Bulk in Sweden, in partnership with Caverton Marine, to own a fleet of tankers and gas carriers to serve West African markets.
The operation will target a modern and efficient fleet, with new and existing tonnage depending on market factors and commercial opportunities in the region.
NNPC in search of crude buyers
Recall that just recently, 12 consignments loaded with Nigeria’s crude oil since March 10 were stranded at sea for over a week.
This happened because there were no buyers, and the global market was going after cheaper alternatives from Kazakhstan at the time.
The matter caused deep worries for Nigeria's oil industry and the government, due to the high dependence on oil revenue.
Source: UGC
There were also concerns that the inability to sell March cargoes could lead to a glut in April, causing a drop in oil prices.
NNPC set to export new crude in April
In related news, the Nigerian National Petroleum Company Limited is set to export Nigeria’s newest crude oil grade to Europe.
The sweet Obodo blend will reportedly hit the European market in April, where Nigeria sells most of its crude.
Reports say the sweet Obodo blend will be produced by Nigerian Independent Continental Oil and Gas from the onshore oil block OML 150, and may be priced alongside the Nigerian medium-sweet Bonga blend.
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Source: Legit.ng
