NNPC Forms Tanker Venture with Nigerian, Swedish Shippers

Nigerian National Petroleum Co. Ltd. (NNPC) has signed a deal with local shipping company Caverton Marine Ltd. and Sweden’s Stena Bulk to create an oil and gas tanker operator that will serve Nigeria and West Africa.

The partners will “explore options to create a modern and efficient fleet of tankers, comprising both new and existing tonnage depending on market factors and commercial opportunities in the region”, a joint statement said.

“The partners will evaluate opportunities for both vessel acquisitions and long-term charter arrangements, with a focus on maintaining competitive operating costs while meeting the highest standards of safety and sustainability.

“This fleet will primarily serve the logistics needs of NNPC (crude, clean and LNG/LPG)”.

The fleet would also cater to other producers and traders of petroleum, refined products and liquefied natural gas (LNG).

“This strategic partnership marks a significant milestone in NNPC's commitment to modernizing Nigeria's maritime infrastructure”, said NNPC Shipping Ltd. managing director Panos Gliatis. “By combining our expertise with Stena Bulk and Caverton Marine, we are creating a robust platform that will enhance our domestic refining, import and export capabilities and strengthen Nigeria's position in global energy logistics”.

Stena Bulk president and chief executive Erik Håne said, “This collaboration aligns perfectly with our pragmatic strategy of expanding our presence in key growth markets while maintaining our high standards of operational excellence and sustainability”.

“Nigeria's energy sector is undergoing remarkable transformation, and we're proud to be part of this journey”, Håne added.

Bode Makanjuola, chief executive of Caverton Marine parent company Caverton Offshore Support Group, said, “By combining local knowledge with international best practices, we are establishing a world-class operation that will benefit not only Nigeria but the entire Sub-Saharan Africa region”.

The co-venturers said, “The country's strategic location, growing population, and ambitious infrastructure developments are creating new opportunities for shipping companies”.

Caverton Marine, incorporated 1999, ships hydrocarbon products and provides other marine transport services. Its clientele includes offtakers of liquefied petroleum gas (LPG) from Nigeria LNG, which produces up to 22 million metric tons a year of LNG and up to five million metric tons a year of natural gas liquids including LPG.

Stena Bulk, founded 1982, owns about 100 vessels transporting crude and refined products.

Last year NNPC made its first deliveries of LNG to Japan and China on an ex-ship basis. NNPC sold its first LNG cargo late 2021 and has traded over 20 cargoes to the Asian and European markets on a free-on-board basis, NNPC said then.

The recent cargoes for China and Japan marked the first time NNPC sold LNG to these countries on a delivered ex-ship basis, meaning NNPC oversaw shipping and insurance for the products until they reached designated ports, it said in a press release August 26, 2024.

Its subsidiaries NNPC LNG Ltd. and NNPC Shipping collaborated on the deliveries.

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