Sunday, 22 October 2023 04:52

NNPC and partner ‘use significantly more expensive’ tiny tankers to replace broken oil pipeline for crude oil exports - Bloomberg

Rate this item
(0 votes)

Nigeria is turning to a fleet of tiny river-going tankers to boost its oil production because one of its key oil pipelines has been broken for months.

Africa’s top producer, racing to lift output before OPEC decides new oil-production quotas, has started using the tiny vessels to get a new grade of oil, Nembe Creek, up the Niger river delta and onto an ocean-going ship that’s stationed off the nation’s coast.

The same oil previously went by the Nembe Creek trunk pipeline to the Bonny terminal, which is operated by Shell Plc.

That conduit, operated by Aiteo Group and previously running at about 150,000 barrels a day, hasn’t sent oil to Bonny since Feb. 2022, according to people with knowledge of the matter. Bonny is also fed by another pipeline and that flow continues.

While the rerouting reduces overall shipments from Bonny, it should have no effect on Shell’s share of Nigerian oil. Shell sold the pipeline to Aiteo in 2015.

The new logistics setup uses a floating storage offloading vessel called Galilean 7, which is anchored near the Brass terminal, according to a terminal information sheet seen by Bloomberg.

Shuttling Nembe Creek oil, which is owned by Nigeria and Aiteo, is a significantly more expensive method than by pipeline.

The river’s depth limits the size of the ships that can sail up it, meaning about 24 individual deliveries are needed in order to get enough oil to fill a standard ocean going ship.

A Shell spokesman declined to comment. Aiteo and NNPC didn’t immediately respond to requests for comment.

A 1-million barrel Suezmax tanker Maran Orpheus lifted the first cargo of the new grade from Nembe Creek terminal on Oct. 10, tanker tracking data compiled by Bloomberg show.

Nigeria is scheduled to load approximately 65,000 barrels a day of the new Nembe Creek grade this month and next, according to export loading programs seen by Bloomberg. That would replace most, but not all, of the reduction in flows from Bonny.

March 16, 2025

Petrol price war drives marketers to reduce purchases as losses mount

A price war between Dangote Petroleum Refinery and the Nigerian National Petroleum Corporation Limited (NNPCL)…
March 16, 2025

El-Rufai speaks further on Tinubu’s presidency, Chicago scandal, other issues

Former Kaduna State Governor Nasir El-Rufai has revealed that he and other political leaders were…
March 14, 2025

How leaders train themselves to rethink and adapt faster

Paola Cecchi-Dimeglio Recognizing the value of rethinking is one thing—making it a habit is another.…
March 01, 2025

Man offers to split $525,000 jackpot with thieves who stole his credit card to buy…

A Frenchman appealed to the homeless thieves who stole his credit card to buy a…
March 14, 2025

Gunmen invade Kaduna communities, abduct 10

Suspected bandits have abducted ten villagers from three remote communities in Kajuru Local Government Area…
March 16, 2025

Here’s the latest as Israel-Hamas war enters Day 527

Freed Israeli hostage speaks for the first time about his 505 days of surviving Hamas…
March 15, 2025

Humanoid robot with human-like competence unveiled in China

Du Qiongfang Humanoid robot manufacturer AgiBot in Shanghai unveiled on Tuesday its latest humanoid robot…
January 08, 2025

NFF appoints new Super Eagles head coach

The Nigeria Football Federation (NFF) has appointed Éric Sékou Chelle as the new Head Coach…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2025 NewsScroll. All rights reserved.