Nigeria has recently adopted a new approach for transporting some of its oil, opting for small river vessels instead of utilizing the Nembe Creek trunk line (NCTL), a pipeline that has been non-operational. This strategic shift was reported by Bloomberg on October 20, marking an adjustment in the country’s oil transportation methods.
According to tanker tracking data, on October 10, the first cargo of the newly introduced Nembe Creek grade was loaded onto a 1-million-barrel Suezmax tanker named the Maran Orpheus. Over the next few months, Nigeria plans to load approximately 65,000 barrels per day of this new Nembe Creek grade, aiming to compensate for the reduced flows from the Bonny terminal.
Due to the disruption of the Nembe Creek trunk pipeline, Nigeria has resorted to using small river vessels to transport the new grade of oil, Nembe Creek, from the Niger River delta to an ocean-going ship stationed off the coast. In the past, this oil was transported via the Nembe Creek trunk pipeline to the Bonny terminal, which was previously operated by Shell Plc.

However, the pipeline, now managed by the Aiteo Group and once capable of handling around 150,000 barrels daily, has remained inactive since February 2022. Nevertheless, another pipeline continues to supply oil to the Bonny terminal. The transition in oil transportation methods affects the total shipments from Bonny, although Shell’s share of Nigerian oil remains unaffected, given that the company sold the pipeline to Aiteo in 2015.
The newly adopted logistics setup includes a floating storage offloading vessel, the Galilean 7, which is anchored near the Brass terminal. However, it is important to note that transporting Nembe Creek oil, owned by Nigeria and Aiteo, through river vessels is a significantly more expensive method compared to using pipelines.
The river’s shallow depth limits the size of ships that can navigate it, requiring around 24 individual deliveries to fill a standard ocean-going vessel. This shift in transportation methods underscores the challenges and additional costs associated with adapting to the disrupted pipeline infrastructure.
In a broader context, Nigeria has been grappling with crude oil theft for decades. However, the situation has worsened over time, as perpetrators have become increasingly emboldened. The government’s delayed response has allowed the crime to become deeply entrenched. Now, the issue has grown into a significant challenge, making it difficult for the country to meet its OPEC quota of 1.7 million barrels per day.
The Nigerian National Petroleum Company Limited (NNPCL) recently reported a staggering 205 incidents of crude oil theft in the oil-producing areas of the Niger Delta region between October 7 and 13. This alarming situation has prompted the current Senate to announce its intention to investigate crude oil theft and provide its findings in the coming weeks.
However, it’s worth noting that previous investigations by the National Assembly have failed to yield viable solutions, with the primary outcome being the revelation of trillions of naira lost to this ongoing challenge. Despite these obstacles, the government remains committed to addressing crude oil theft and safeguarding the nation’s vital oil resources. The situation underscores the need for comprehensive solutions and long-term strategies to combat this pervasive issue.
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