The Nigerian National Petroleum Company (NNPC) Limited has highlighted the repercussions of the ongoing Russia-Ukraine war on Nigeria’s crude oil exports, particularly in the Asian market, with a notable decline in demand from countries like India.
During a panel presentation at the Argus European Crude Conference in London, Maryamu Idris, the Executive Director, Crude & Condensate, NNPC Trading Limited, explained that the conflict has led to a shift in India’s preference for discounted Russian barrels, reducing Nigeria’s crude exports to India from 250,000 barrels per day (bpd) before the invasion to around 120,000 bpd this year.
Conversely, Idris noted an increase in Nigerian crude flow to Europe as it fills the supply gaps left by the ban on Russian crude. Six months before the war, 678,000 bpd of Nigerian crude grades went to Europe, compared to 730,000 bpd so far this year.
The panel presentation also touched on oil production challenges faced by Nigeria, including reduced investment, supply chain disruptions, aging oil fields, and oil theft.
Idris expressed optimism about overcoming these challenges with the implementation of the Petroleum Industry Act of 2021 and partnerships with financial institutions to boost upstream investments.
NNPC Limited is actively addressing security and environmental challenges in the Niger Delta to support production growth. In September 2023, Nigeria recorded its highest crude oil and condensate output in nearly two years at 1.72 million bpd, signaling the beginning of a production rebound.
In addition to growing upstream production, NNPC Limited is expanding its presence in the downstream sector through the restructured NNPC Trading Company, aiming to bring Nigeria’s hydrocarbon products closer to end-users globally.
