The Nigerian National Petroleum Company Limited ,NNPCL, has said the Russian- Ukraine crisis has led to a dip in demand for Nigerian grades from the once-dependable Asian market.
It explained that the situation made India, a primary destination for Nigerian grades, to opt for discounted Russian barrels to the detriment of some Nigerian volumes.
Executive Director, Crude & Condensate, NNPC Trading Limited, Maryamu Idris, said this during a panel presentation at the Argus European Crude Conference in London.
She said:”To illustrate the extent of this shift, Nigeria’s crude exports to India dwindled from approximately 250,000 barrels per day (bpd) in the six months preceding the February 2022 invasion of Ukraine to 194, 000 in the subsequent six months afterwards. And so far this year, only around 120, 000 bpd of Nigerian crude volumes have made their way to India.”
She further noted that the Nigerian crude flow to Europe has increased in a bid to fill supply gaps left by the ban on Russian crude, pointing out that six months before the war, 678, 000 bpd of Nigerian crude grades went to Europe, compared to 710, 000 bpd six months later and 730, 000 bpd so far this year.
According to her, “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,. “