Crude oil exports from Nigeria to Europe have increased to 730,000 barrels per day despite the shortage of its supply to local refineries.
On Thursday, the Nigerian National Petroleum Company Limited revealed that Nigeria’s crude oil flow to Europe had increased in a bid to fill supply gaps left by the ban on Russian crude.
This is just as the Crude Oil Refinery Owners Association of Nigeria said that the Federal Government had begun the move to increase supply to local refineries.
The Executive Director, Crude and Condensate, NNPC Trading Limited, Maryamu Idris, disclosed this during a presentation at the Argus European Crude Conference in London, according to a statement issued by the oil firm in Abuja.
She pointed out that six months before the Russia-Ukraine war, 678,000bpd of Nigerian crude grades went to Europe, compared to 710,000bpd six months later and 730,000bpd so far this year.
“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,”
Reacting to the rise in crude oil export to Europe amid shortage for domestic refineries, the Secretary, Crude Oil Refinery Owners Association of Nigeria, Olusegun Ilori, said CORAN was optimistic that the government would provide crude for modular refineries.
CORAN is a registered association of modular and conventional refinery companies in Nigeria. Modular refineries are simplified refineries that require significantly less capital investment than traditional full-scale refineries.
“The government has set some guidelines geared towards increasing crude oil supply to local refineries. So far these guidelines are followed we have no issue. We hope the oil producing companies comply with it as regards crude supply obligation to local refineries,” he stated.
Oil marketers again urged the Federal Government to step up crude oil supply to local refineries.
The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, reiterated his position on the matter.
He said it was saddening to realise that modular refineries were being starved of crude oil, while the commodity was being exported out of the country.
“I’ve said it before that what is stopping the government from giving modular refineries’ operators the required support to reduce our continued dependence on imported petroleum products? You cannot continue to starve our domestic refineries because you want dollars through crude oil export.
“The emergence of functional modular refineries in their numbers in Nigeria is long overdue. We cannot continue to import products when we can build or have modular refineries to help refine some of our crude oil. Now the subsidy on petrol has been reduced, let the modular refineries work.
“We know that subsidies also contributed to their inability to come on stream as required. Now that it is reduced, we expect the government to also give them the required support by supplying them with crude oil so that many of them can start the refining process in the nearest future,” Ukadike stated.
