A case for freights

The number of the Nigeria’s active oil rigs rose to 35 in February 2018, a level last seen in early 2015.¹ This enhances an average output of 1.92 million barrels of crude oil daily.

This makes Nigeria one of the major exporters of oil and gas in the world. This volume generates huge freight for carriers. These freights transport the crude from the rig all around the world where they are refined to petroleum products. It is a huge business for anyone involved.

Unfortunately, Nigeria’s Indigenous shipping operators have insignificant share of the freight earned from the carriage of Nigeria’s crude compared to their foreign counterparts. On the 17th of January 2018, a motion was set to change this with the joint decisions of The Nigerian National Petroleum Corporation (NNPC) and the Nigerian Maritime Administration and Safety (NIMASA) to allow indigenous ship owners to lift crude oil.²

In his reaction to this development, NIMASA Director-General, Dr. Dakuku Peterside said, “the changing landscape of Nigeria’s maritime sector necessitated this change.” This change, he expects, will encourage indigenous fleet expansion, lead to massive job creation for qualified Nigerian Seafarers, create opportunities for mandatory sea time experience for Nigerian cadets and build expertise and competence in international shipping trade.

Also, the NNPC Group Managing Director, Dr. Maikanti Baru, added that “the corporation had no reason not to allow Nigerians lift their own crude. This is a step in the right direction as Nigerian economy has lost over $100 billion in five decades by allowing its crude oil to be carried exclusively by foreign owned tankers.”

With this step in the right direction, there is no better time to get involved in the maritime industry as a freight or crude oil lifting tanker owner. At Dreg Waters Petroleum and Logistics, we assist in the acquirement of shipping equipment as well as the procurement of the necessary , insurance, legal and inspection services.

For more details on how we can assist and guide you through benefiting immensely from this new initiative, contact us now!

1. The Punch Newspaper, Published April 5, 2018
2. The Nations Newspaper, Published January 17, 2018