NNPC Secures New Export Deal To Drive Growth

Nigerian National Petroleum Company Limited (NNPCL) has secured another breakthrough export deal by shipping out its own cargo to a customer.

The crude will be loaded on 9th or 10th April on Greek owner Delta Tankers’ 164,000-dwt Meltemi I (built 2006), chartered by the Nigerian producer’s NNPC Shipping, which industry sources considered as capable of expanding Nigeria’s economic growth.

NNPC Trading concluded in March a deal to sell the first delivered crude cargo to one of the big oil majors, managing director of NNPC Shipping, Panos Gliatis told TradeWinds. The deal has been done on an ex-ship basis, where the seller takes responsibility for shipping and insurance.

The tanker has options to discharge in various ports in Europe. This is a milestone for NNPC and Nigeria. So far it was considered a free-on-board market, Gliatis added.

The deal follows on from the company’s first shipments of Liquified Natural Gas (LNG) on the same basis last year.

TradeWinds reported in August that the move was, ‘in line with its strategic vision to be a dynamic and reliable global energy supplier of choice.’ Two gas shipments went to Japan and China. The milestone was achieved through the collaboration of NNPC LNG and NNPC Shipping.

The first cargo was delivered on Knutsen OAS Shipping’s 174,000-cbm LNG carrier Grazyna Gesicka (built 2023) to Futtsu, Japan. Another vessel then went to China.

The NNPCL has been involved in LNG trading since 2021.

The group has since said it is forming a joint venture with Stena Bulk in Sweden to own a fleet of tankers and gas carriers to serve West African markets.

The two companies will form the venture with domestic oil and gas logistics firm Caverton Marine.

The operation is targeting a modern and efficient fleet, comprising new and existing tonnage depending on market factors and commercial opportunities in the region, the partners said.

The plan is likely to have arisen out of a suezmax charter deal agreed last year by NNPCL Shipping and the Stena group. In October, NNPCL Shipping fixed crude tankers to supply oil to Nigeria’s huge new Dangote refinery.

The company reached a deal to supply two suezmaxes on time charter for the business. The vessels came from the Stena Sonangol Suezmax Pool, controlled by Stena and Angola oil producer Sonangol.