NNPC Partners Swedish Firm, Others to Launch Unity Shipping Worldwide

• The Nigerian National Petroleum Company Limited (NNPC), in partnership with Stena Bulk and Caverton, has launched a new shipping company
• The companies unveiled UNITY Shipping Worldwide in NPPC Towers in Abuja to support the government’s efforts
• The new company will help Nigeria in freight its crude to global markets amid a lack of a national fleet

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian National Petroleum Company Limited (NNPC) has partnered with Stena Bulk, a Swedish shipping agency, Stena Bulk, and Caverton to launch Unity Shipping Worldwide (USW).

The development comes amid the disbursement of the $700 million cabotage fund by the Nigerian government to support indigenous ship owners in acquiring new vessels.

Nigeria lacks a national shipping line

Nigeria is reportedly the eighth-largest oil exporter globally and lacks a national fleet.

Foreign vessels currently freight Nigerian crude due to the lack of a national fleet that meets international standards.

The partners disclosed that the new deal will revamp Nigeria’s shipping ability on a global scale, aligning with the government’s aim for a thriving and profitable oil sector.

The USW unveiling was held at the NNPC Tower in Abuja, where the senior management team disclosed that the state oil firm is poised for major transformation.

The new company will boost Nigeria’s competitiveness 

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the venture is a bold move to transform the energy sector and boost Nigeria’s global economic standing.

Lokpobiri disclosed this during a visit to the USW partners in Abuja, saying that the shipping firm shows President Bola Tinubu’s vision, facilitated by his leadership and vision in industrial reforms.

Gboyega Oyetola, the Minister of Marine and Blue Economy, said the initiative shows the government’s aspirations for indigenous participation and international partnership in maritime operations.

He stressed the government’s support in encouraging local efforts, saying that the move is a perfect and laudable achievement.

Caverton CEO, Olabode Makanjuola, said the venture represents the culmination of years of planning, saying that a formidable blend of local knowledge and global best practices will propel the company to greater heights.

He said the company’s readiness to deliver on the objectives of the USW will close a decade of gaps, marking a significant stride in boosting Nigeria’s maritime capabilities.

The partners disclose the benefits of USW

According to a report by The Guardian, in 2018, NNPC decided to consolidate its shipping capabilities under NNPC Shipping Limited to streamline operations and build a fleet competitive with global leaders.

Stena Bulk CEO, Erik Hanell, expressed excitement at the partnership, saying it will contribute to operational excellence and sustainability in Nigeria’s energy sector.

President and CEO of Stena Bulk, Erik Hånell, expressed excitement at the collaboration, which he believes will significantly contribute to operational excellence and sustainability within Nigeria’s evolving energy sector.

Experts have said the launch comes when the global oil shipping demand is on the rise, with shipping playing a critical role in the sustained global demand for energy.

According to reports, West Africa exports about 3.8 million barrels of crude oil daily, showing the region’s role in energy logistics.

NNPC speaks on the capacity of the PH refinery

Legit.ng previously reported that NNPC has confirmed that, contrary to what the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) claimed, the old Port Harcourt is currently operating at 90% capacity.

PETROAN said that the refinery is now running at 70% of its installed capacity, with plans to ramp up to 90%.

Although the refinery's nameplate states that it can produce 60,000 barrels of oil per day, Channelstv reported that a statement issued by NNPCL spokeswoman Olufemi Soneye on Friday, November 29, stated that it is currently operating at 90% capacity.

Source: Legit.ng