The Nigerian National Petroleum Company Limited , NNPCL, has shed light on how the ongoing Russia-Ukraine war has affected Nigerian crude oil inflows in the international oil market.
Maryamu Idris, Executive Director of Crude and Condensate at NNPC Trading Limited, highlighted this during a panel presentation at the Argus European Crude Conference in London.
The NNPC Ltd revealed that there was a dip in demand from the once-dependable Asian market due to the conflict, impacting Nigeria’s crude export to India.
Nigeria’s crude exports to India decreased from roughly 250,000 barrels per day (bpd) in the six months leading up to the February 2022 invasion of Ukraine to 194,000 in the following six months, demonstrating the magnitude of this change.
“And only about 120,000 bpd of Nigerian crude volumes have made their way to India so far this year,” she stated.
However, she said that in an effort to make up for supply shortages caused by the ban on Russian crude, Nigerian crude flow to Europe has increased.
She noted that Nigerian crude flow to Europe increased to fill supply gaps left by the ban on Russian crude.
Six months prior to the war, 678,000 barrels per day of Nigerian crude grades were exported to Europe; six months later, that number rose to 710,000 barrels per day, and thus far this year, it has reached 730,000 barrels.
This pattern clearly indicates that Nigerian grades are starting to play a bigger role in European refiners’ post-war palettes.
“With the lack of Russian Urals and diesel, many European refiners have consistently chosen several Nigerian distillate-rich grades.
Despite production challenges exacerbated by the COVID-19 pandemic, NNPC Limited is implementing new frameworks to rejuvenate the business landscape and promote upstream investments for sustainable growth in the coming years.
The company aims to fortify production growth by addressing security and environmental challenges in the Niger Delta.
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