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Nembe Blend alias Nembe Crude Oil: A new international grade crude oil by Aiteo Exploration and Production Limited

By Dr. Inenyo Esinte

The global Crude Oil market is highly competitive and dynamic. One key international Crude Oil market feature that determines and calibrates the Crude Oil price matrix and demand is the quality, which is measured by the American Petroleum Institute (API) gravity grading scale of Crude Oil in tune with global Crude Oil market standards.

API gravity is a commonly utilized scale for measuring the density of Crude Oil which is calculated from a hydrocarbon’s specific gravity.

Crude Oil usually has an API grade between 15 and 45 degrees. A Higher API of 35-45 indicates a lighter (lower density) Crude Oil, a medium density Crude Oil has an API range of 25-35, and an API range of 15-25 is heavy Crude Oil. Any Crude Oil with an API below 15 would be considered extra-heavy Crude Oil.

For better global Crude Oil market preference and performance, Crude Oil with higher API grades are better priced and in high demand for the following reasons:

Lighter (high API) Crudes are more valuable because they yield more high-value light refined products when run through a refinery with better yield time, thus most of the highest valued Crudes at the global Crude Oil market mix such as Brent and West Texas Intermediate (WTI) are typically light Crudes with an API range of 35-45

The Nembe Blend a.k.a Nembe Crude Oil—a new global high-quality Crude Oil brand was unveiled by AITEO and NNPCL at the Argus European Crude conference in London.

According to NNPCL, the novel Nembe Blend of Crude Oil prides itself on an API of 29, low Sulphur content, and holds a high market value when compared to other globally highly-ranked brands such as Brent Crude.

It is also worthy of note to state that the Nembe Blend of Crude Oil promises a brighter global Crude Oil market demand from Nigeria. The brand, which has already shipped to major global consumers like France and the Netherlands, adds to the growing list of international highly-rated Crudes from Nigeria such as Bonga, Egina, and Forcados Crudes.

The Nembe Blend alias Nembe Crude Oil is produced from OML 29 Joint Venture, onshore Nigeria, and operated jointly by NNPCL-Aiteo E&P—an indigenous operator that took over operations from Shell following divestment by SPDC.

As a temporary, better alternative, and more business-friendly means of Crude Oil transportation off the long-troubled, insecure, and regularly vandalized pipelines, Aiteo E&P barges its Crude Oil from OML 29 via mega Seagoing Crude Oil transportation Vessels from Nembe Creek Crude Oil Export Terminal to a Floating Storage and Off-loading (FSO) Vessel in the Atlantic Ocean, off the coast of Brass Island.

By this new means of Aiteo’s Crude Oil transportation from Nembe Creek, which now serves as the novel pipeline, the coastal host communities to Aiteo E&P (Nembe Creek, Kpongbokiri, Kalaorubo, Twon Brass, Beletiema and Okpoama), which are primarily fishing communities, suffers hugely from the negative environmental, health and social effects of Aiteo’s Crude Oil transportation from Nembe Creek through mega Seagoing Vessels, which recently led to a peaceful protest against Aiteo’s unfair treatment, disregard and neglect of the rights of host communities and their environments by chiefs, elders, women and youths of Twon Brass, with similar echoes of poor relationship with host communities by Aiteo E&P from Beletiema and Okpoama communities respectively.

While host communities continue to create and provide a peaceful and business-savvy environment for Aiteo E&P to operate, the environments, rights, and privileges of host communities must be reciprocally respected by Aiteo E&P in sync with existing Oil and Gas exploration laws of the Federal Republic of Nigeria and global best practices in a win-win approach.

Inenyo writes from Yenagoa and can be reached via
Email: esinteinenyo@gmail.com or
Phone:+2348157946295

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