Nigeria’s state oil company, the Nigerian National Petroleum Company (NNPC) Limited, has taken another step toward repositioning itself as a global energy player by shipping its first crude oil cargo under a newly structured trading model.
The cargo, managed and delivered by NNPC Shipping, will be loaded on 9 or 10 April aboard the 164,000-deadweight tonne (dwt) Meltemi I, a Suezmax tanker owned by Greece’s Delta Tankers.
The deal was completed on an ex-ship basis, meaning NNPC is responsible for arranging the shipment and covering the insurance, marking a departure from Nigeria’s traditional free on board (FOB) crude sales system.
“NNPC Trading concluded in March a deal to sell the first delivered crude cargo to one of the big oil majors,” said Panos Gliatis, managing director of NNPC Shipping. “This is a milestone for NNPC and Nigeria.”
The cargo has options to discharge at multiple ports in Europe, TradeWinds reported.
This development comes as part of NNPC’s wider strategy to reshape its trading model, giving it more control over logistics and market access.
Traditionally, Nigeria has relied on the FOB model, where buyers are responsible for arranging shipping.
However, with this shift, the company is taking on a more active role in its trading operations by managing end to end delivery.
The move mirrors steps the company took last year when it delivered its first LNG shipments using the same ex ship model.
In that instance, NNPC LNG and NNPC Shipping collaborated to deliver cargoes to Japan and China, using vessels such as Knutsen OAS Shipping’s 174,000-cbm LNG carrier Grazyna Gesicka.
“This evolution in our delivery structure allows us to better serve global clients and expand our footprint in the international energy space,” Gliatis noted.
Since entering the LNG trading market in 2021, NNPC has gradually been increasing its maritime capabilities through joint ventures and long term charters aimed at building a modern and reliable fleet.
As part of its broader shipping ambitions, NNPC is currently working on a joint venture with Sweden’s Stena Bulk and Nigerian logistics firm Caverton Marine.
The goal is to establish a fleet of crude tankers and gas carriers tailored to serve the West African market and beyond.
The venture is expected to operate a mix of new and existing vessels, depending on commercial opportunities and market conditions.
In October 2024, NNPC Shipping entered into an agreement to charter two Suezmax tankers from the Stena Sonangol Suezmax Pool to support crude deliveries to Nigeria’s 650,000-barrels per day Dangote Refinery, a key piece of the country’s energy infrastructure.
“This joint effort aims to build a strong, responsive and commercially viable shipping arm for NNPC,” a company representative said at the time.
