Nigeria, one of Africa’s leading crude oil producers and a member of the OPEC, has recently introduced a new grade of crude oil known as “Nembe,” with a strategic focus on the European market. This development comes as Nigeria seeks to expand its crude oil export portfolio and diversify its market presence.
The Nigerian National Petroleum Corporation (NNPC) revealed that the first cargoes of Nembe were successfully sold in October. The initial shipments, consisting of two cargoes, each containing 950,000 barrels, were destined for France and the Netherlands. This significant step marks Nigeria’s entry into the European market with a new distillate-rich crude grade.
Maryamu Idris, Executive Director of Crude and Condensate at NNPC Trading, described Nembe as having characteristics similar to Nigeria’s other distillate-rich crude grades, including Forcados, Bonga, and Egina. The distinguishing feature of Nembe is its low sulfur content, which makes it an attractive option for European refiners. This low-sulfur grade commands a premium compared to the global Brent benchmark, positioning it favorably against Brazilian and Azeri crude grades in the competitive European market.
Currently, the production of Nembe stands at approximately 50,000 barrels per day, but the NNPC has ambitious plans for expansion. By the first quarter of the next year, they aim to increase production to 80,000 barrels per day, with a long-term goal of reaching 150,000 barrels per day by the beginning of 2025.
These developments are part of Nigeria’s broader strategy to enhance its crude oil production and export capabilities. As per a Reuters survey, Nigeria currently produces around 1.5 million barrels per day (bpd). However, the country has set its sights on boosting production to approximately 1.7 million bpd, as confirmed by a second source from NNPC.
Nigeria’s venture into the European market with the Nembe grade represents a significant milestone in the nation’s oil industry. It not only expands the country’s market reach but also offers an environmentally friendly, low-sulfur option that aligns with global trends in cleaner energy sources.
The successful debut of Nembe on the international stage reflects Nigeria’s commitment to adapting to changing market dynamics and providing high-quality crude oil products that cater to the diverse needs of its global clientele. As Nigeria continues to invest in expanding its crude oil production and refining capabilities, the introduction of Nembe serves as a testament to the country’s potential in the international energy landscape.
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