The Nigerian National Petroleum Company Limited (NNPCL) has said the country’s supply of crude oil to European buyers has jumped to 730,000 barrels per day (bpd) this year following strong demand caused by the Russian war on Ukraine.
Executive Director, Crude & Condensate, NNPC Trading Limited, Maryamu Idris said the oil flow to Europe rose to fill supply gaps left by the ban on Russian crude following its invasion of its eastern European neighbour on February 24, 2022.
Idris, who spoke during a panel presentation at the Argus European Crude Conference in London, noted that six months before the war, 678,000 bpd of Nigerian crude grades went to Europe, compared to 710, 000 bpd six months later and 730, 000 bpd so far this year.
She said: “This trend makes it evident that Nigerian grades are increasingly becoming a significant component in the post-war palette of European refiners.
“Several Nigerian distillate-rich grades have become a steady preference for many European refiners, given the absence of Russian Urals and diesel.
“Forcados Blend, Escravos Light, Bonga, and Egina appear to be the most popular, and our latest addition — Nembe Crude – fits well into this basket. This was a strong factor behind our choice of London and the Argus European Crude Conference as the most ideal launch hub for the grade.”
Idris said this was gradually compensating for the dip in demand for Nigerian crude oil at the Asian market in the wake of the war.
On production challenges, Idris stated that like many other oil-producing countries, Nigeria had faced production challenges aggravated by the COVID-19 pandemic, including reduced investment in the upstream sector, supply chain disruptions impacting upstream operations, ageing oil fields, and oil theft.