Nigeria’s state-owned oil firm, NNPC Ltd, announced the introduction of a new crude grade named Nembe, as the country endeavors to increase crude production.
Previously, Nembe’s production was integrated into the Bonny Light stream, however, output was hampered by sabotage on the Nembe Creek Trunk Line (NCTL). The country has successfully resurrected Nembe as a distinct grade, with the first cargoes sold in October, totaling two 950,000 barrel shipments to France and the Netherlands.
The low-sulphur grade commands a premium over the global Brent benchmark and is anticipated to compete with Brazilian and Azeri crude grades for European refiners, according to Reuters.
Maryamu Idris, the executive director of crude and condensate at NNPC trading told the conference that Nembe is similar to other distillate-rich grades like Forcados, Bonga and Egina.
The current Nembe production stands at approximately 50,000 barrels per day, with plans to increase it to 80,000 bpd by Q1 2024 and 150,000 bpd by the beginning of 2025. Nigeria, Africa’s largest oil producer, aims to elevate its overall crude production to around 1.8 million bpd by the end of 2023.
The country’s national oil corporation also recently revealed plans to supply the Dangote oil refinery with up to six crude oil cargoes in December for test runs, as Nigeria seeks to reduce its reliance on fuel imports.