The state-owned oil company of Nigeria, NNPC Ltd., announced on Tuesday that it has introduced a new crude grade called Nembe, which it claims is especially well-suited for the European market.
Nigeria, an OPEC member and one of Africa’s leading producers of crude oil, has long suffered from falling output as well as supply disruptions brought on by instability and oil theft.
On the fringes of the Argus European Crude Conference in London, an NNPC source said that the first cargoes of Nembe were sold in October. These included two shipments totaling 950,000 barrels, which were sold to France and the Netherlands.
Maryamu Idris, executive director of crude and condensate at NNPC Trading, told the conference that Nembe is comparable to other distillate-rich grades in Nigeria, including Forcados, Bonga, and Egina.
She said that the low-sulfur quality is a strong contender to compete with Brazilian and Azeri crude grades for European refiners, commanding a premium above the global Brent benchmark.
The source further stated that the NNPC plans to increase Nembe production from the current level of about 50,000 barrels per day to 80,000 barrels per day by the first quarter of 2025 and 150,000 barrels per day by the beginning of 2026.
Nigeria produces around 1.5 million barrels per day (bpd). However, the nation intends to increase production to roughly 1.7 million bpd.
