Argentina to Import Nigerian Crude Oil

Ejiofor Alike With agency reports

Argentina to Import Nigerian Crude Oil

The Federal Government’s efforts to find alternative markets for Nigeria’s crude oil after exports to the United States dropped has received a big boost as Argentina has ordered for Nigerian Bonny Light crude, with the first cargo expected to arrive at the country’s Bahia Blanca Port in the first week of next month.

Reuters reported that Argentina's state-run oil company, YPF awarded a tender to buy a one million-barrel cargo of Nigerian Bonny Light crude to trading firm, Vitol.

This development marks the first time Argentina, which produces 700,000 barrels per day (bpd) of crude oil, according to the United Energy Information Administration, has agreed to buy Nigerian crude, since the South American country lifted restrictions on crude imports in January this year.

Sources within the Argentina government were quoted as saying that the plan to buy crude oil from Nigeria and other countries was taken to ensure the importation of cheaper crudes instead of more expensive finished fuels.

“The cargo will be delivered in the second week of May at Bahia Blanca port and then the crude will be distributed by Enarsa to several Argentine refineries, including Campana, La Plata and Buenos Aires,” one of the sources was quoted as saying.

Enarsa, another Argentine state-run oil company, will be in charge of receiving the cargo and will deliver the crude to refining companies.

Axion Energy's 90,000 bpd Campana refinery, the country's fourth-largest, is undergoing a planned major maintenance.