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.

May 08, 2025

‘Don’t worry’ about your salary early in your career, says Warren Buffett: Focus on this…

I worked at a financial magazine for much of my 20s, and for the most…
May 08, 2025

Pat Utomi forms ‘shadow government’. These are the members and what they’ll do

Economist and political activist, Pat Utomi has assumed a formal opposition role with the formation…
May 04, 2025

Humility is a superpower. Here’s how to practice it daily - Majorie Radlo-Zandi

I was strolling up the hill in Greater Boston to a French cooking class. The…
May 03, 2025

Man accidentally buys his own car after it was stolen a few weeks earlier

An English man unknowingly bought back his own Honda Civic just weeks after it was…
May 07, 2025

Gunmen invade Plateau communities, kill six, injure several

No fewer than six persons were killed in renewed attacks in Marit and Gashish communities…
May 08, 2025

What to know after Day 1169 of Russia-Ukraine war

RUSSIAN PERSPECTIVE Russia’s 72-hour ‘Victory Day’ truce begins A 72-hour ceasefire proposed by Russian President…
May 07, 2025

The first driverless ‘trailers’ have started running regular longhaul routes

Driverless trucks are officially running their first regular long-haul routes, making roundtrips between Dallas and…
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; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2025 NewsScroll. All rights reserved.