In the crude oil market, we use our global presence, market knowledge and logistics capabilities to balance supply and demand, optimise supply chains and service the needs of our customers around the world.
We operate primarily as physical traders. We source oil from a variety of counterparties including public production companies, oil majors and national oil companies. We also provide distribution solutions for producers, and assist refineries by supplying tailored shipments and specialist financing.
Crude oil is classified by the location of its origin (e.g. West Texas Intermediate, WT, Brent, Dubai or Minas) and often by its relative weight or viscosity (light, intermediate or heavy); refiners may also refer to it as `sweet’, which means it contains relatively little sulphur, or as `sour’, which means it contains substantial amounts of sulphur and requires more refining in order to meet current product specifications. The number of carbon atoms determines the oil’s relative `weight’ or density. Gases generally have one to four carbon atoms, while heavy oils and waxes may have 50, and asphalts, hundreds.
Crude oil from an area in which the crude oil’s molecular characteristics have been determined and the oil has been classified are used as pricing references throughout the world. These references are known as Crude oil benchmarks.
Bonny Light Crude oil is a high grade of Nigerian crude oil with high API gravity (low specific gravity), produced in the Niger Delta basin and named after the prolific region around the city of Bonny.
The very low sulfur content of Bonny Light crude makes it a highly desired grade for its low corrosiveness to refinery infrastructure and the lower environmental impact of its byproducts in refinery effluent.
Other grades of Nigerian crude oil are Qua Iboe crude oil, Brass River crude oil, and Forcados crude oil. The Cabinda crude oil is a common grade of crude oil produced in Angola. The Bonny Light is in high demand specifically by American and European refineries. It is therefore a major source of income generation from the oil rich nation.
The national government of Nigeria runs and takes part in the petroleum industry of Nigeria through the NNPC corporation.