However, she noted that Nigerian crude exports to Europe have risen, aiming to bridge the supply void created by the ban on Russian crude. Six months before the conflict, 678,000 barrels per day (bpd) of Nigerian crude were destined for Europe. In contrast, six months into the war, this figure increased to 710,000 bpd, and the current year has seen exports reach 730,000 bpd.

“This trend makes it evident that Nigerian grades are increasingly becoming a significant component in the post-war palette of European refiners,” she stated.

She also explained that 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 Nigeria’s latest addition – Nembe Crude – fits well into this basket.

Idris added that “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.”

According to a Reuters report, Nembe production was reportedly added to the Bonny Light stream more than three years ago until incidents of sabotage on the Nembe Creek Trunk Line (NCTL) hit output. But the country has managed to resurrect Nembe as a separate grade. The first cargoes of Nembe were sold in October, with two 950,000 barrel shipments sold to France and the Netherlands.

Idris noted that production challenges in Nigeria, like many other oil-producing countries were exacerbated by the COVID-19 pandemic, including reduced investments in the upstream sector, supply chain disruptions, ageing oil fields, and oil theft.

These factors contributed to declining production in the latter part of 2022 and the beginning of 2023.

According to her, NNPC Limited has secured vital partnerships with notable financial institutions to promote upstream investments to restore and sustainably grow production capacity in the coming years.

“Suffice to say we have already begun seeing significant progress on the rebound. In September 2023, Nigeria recorded its highest crude oil and condensate output in nearly two years, reaching 1.72 million barrels per day. This, we believe, is just the beginning of our production rebound,” she said.