Nigeria is transforming its oil transport strategies, says Bloomberg, with Aiteo, its leading independent oil producer, at the helm. The innovation? Nembe Creek, a new oil blend.
Small, river-going tankers now transport Nembe Creek from inland areas to worldwide markets. This change follows disruptions to the Nembe Creek trunk pipeline, inactive since February 2022. Shell Plc once operated this pipeline before Aiteo acquired it in 2015, prompting a logistics rethink.
Aiteo’s solution involves smaller ships meeting larger tankers, ensuring continuous oil flow. This strategy, albeit costlier, affirms Nigeria’s dedication to stable oil output, considering impending OPEC quotas.
Aiteo, established by oil tycoon Benedict Peters, significantly influences Nigeria’s oil sector. Their strategies, including deploying the Galilean 7 storage vessel near Brass terminal, streamline transport.
Shell’s Nigerian oil share remains unaffected post-2015 asset transfer. While Aiteo and the Nigerian National Petroleum Corporation haven’t responded to inquiries, global market shifts coincide with these changes. Nigeria’s Bonny Light crude price has spiked, hitting $92.24, possibly due to OPEC’s positive projections, despite volatile prices elsewhere.
Geopolitical issues, including the Israeli-Hamas conflict, add complexity to market dynamics.
Aiteo’s initiatives demonstrate adaptability in sustaining production, mirroring Nigeria’s economic tactics amidst global pressures. Introducing Nembe Creek signifies adaptability, a crucial trait for thriving in today’s energy sector.
