NNPC Secures Major Export Deal, Ships First Crude Cargo Under New Agreement

The Nigerian National Petroleum Corporation (NNPC) Limited has secured a major breakthrough in its export strategy with the signing of a deal to ship crude to a customer this month. The cargo will be loaded on April 9 or 10 onto the Greek-owned 164,000-dwt tanker Meltemi I, which is operated by Delta Tankers and chartered by NNPC Shipping.

The deal was finalized by NNPC Trading in March, marking a significant milestone for the company. Panos Gliatis, the managing director of NNPC Shipping, confirmed that the transaction involved the sale of the first delivered crude cargo to one of the world’s major oil companies. This agreement is structured on an ex-ship basis, meaning that NNPC is responsible for shipping and insurance costs, a departure from the traditional free-on-board (FOB) market model typically used for oil exports.

The Meltemi I has the option to discharge the crude in various ports across Europe, signaling NNPC’s growing influence in global energy markets. Gliatis described the deal as a significant achievement for both NNPC and Nigeria, as it moves beyond the typical FOB framework that has characterized the country’s oil exports in the past.

This milestone follows NNPC’s expansion into Liquefied Natural Gas (LNG) trading, with its first shipments under a similar ex-ship arrangement completed last year. In August 2024, NNPC made its first two LNG shipments to Japan and China, marking a strategic pivot towards becoming a more dynamic and reliable global energy supplier.

NNPC has been involved in LNG trading since 2021, and it is further enhancing its global operations by forming a joint venture with Sweden’s Stena Bulk and Nigerian logistics firm Caverton Marine. This venture aims to create a modern and efficient fleet of tankers and gas carriers to serve West African markets.

In addition to these developments, NNPC Shipping has recently secured deals to supply crude oil to Nigeria’s new Dangote Refinery, including the chartering of two suezmax tankers. These vessels will be used to transport crude to the refinery, part of NNPC’s broader strategy to support Nigeria’s expanding energy infrastructure and diversify its shipping operations.

The new initiatives underscore NNPC’s ongoing commitment to enhancing its capabilities as a global player in both the oil and LNG sectors, with a focus on modernizing its fleet and expanding its international partnerships.

SOURCE: tv360nigeria.com