Crude Oil (CL) - Real-Time Prices

Sub-Saharan Africa Oil Production

Sub-Saharan Africa accounts for approximately 7.5% of global crude oil production, with proven reserves exceeding 57 billion barrels. The region is a critical supplier to global markets, particularly Europe, Asia, and North America. Nigerian crude (Bonny Light) is highly sought after for its low sulfur content.

Major Producers (2024)

• Nigeria: 1.5 million barrels/day - Largest producer, Bonny Light & Forcados grades
• Angola: 1.2 million barrels/day - Offshore deepwater fields dominate
• Ghana: 190,000 barrels/day - Jubilee & TEN fields, growing rapidly
• Republic of Congo: 270,000 barrels/day - Offshore fields
• Equatorial Guinea: 120,000 barrels/day - Zafiro & Alba fields
• Gabon: 200,000 barrels/day - Mature fields with EOR projects
• Chad: 140,000 barrels/day - Landlocked, exports via Cameroon pipeline

Price Drivers

• OPEC+ Quotas: Nigeria & Angola are OPEC members affecting supply decisions
• Global Demand: Economic growth in China, India, US drives consumption
• Refinery Margins: Sweet crude (low sulfur) commands premium pricing
• Geopolitical Risk: Niger Delta unrest, maritime security (piracy), political stability
• Storage Levels: Cushing, OK inventories signal supply/demand balance
• Currency Impact: USD strength affects purchasing power for importers

Volatility Profile

Exporting Crude Oil from Africa

Crude oil exports are capital-intensive and heavily regulated. Most exports occur via offshore loading terminals onto Very Large Crude Carriers (VLCCs). Requirements by country:

Nigeria

• ✓ Export license from Nigerian National Petroleum Corporation (NNPC)
• ✓ Certificate of Origin from Ministry of Petroleum Resources
• ✓ Bill of Lading from loading terminal (Bonny, Forcados, Qua Iboe)
• ✓ Quality certificate (API gravity, sulfur content, water content)
• ✓ Export duty: 0% (incentivized), but royalty: 20% on offshore, 18.5% on onshore
• ✓ Security clearance for vessels (anti-piracy, AIS tracking mandatory)

Angola

• ✓ Export permit from Ministry of Mineral Resources and Petroleum
• ✓ Sonangol (state oil company) clearance for all shipments
• ✓ Terminal fees: $0.10-0.15 per barrel at Malongo, Cabinda terminals
• ✓ Production sharing agreements (PSA) with government (40-60% state take)
• ✓ Quality inspection at load port

Ghana

• ✓ Export license from Ghana National Petroleum Corporation (GNPC)
• ✓ Crude oil lifting permit from Ministry of Energy
• ✓ Royalty: 12.5% on gross production
• ✓ Additional oil entitlement: Government takes 30-55% based on production levels
• ✓ Export from FPSO terminals (Jubilee FPSO, Kwame Nkrumah FPSO)

Importing Crude Oil

• HS Code: 2709 (Petroleum oils, crude)
• Import Duty: 0-5% (most countries zero-rate crude for refining)
• Refinery Requirements: Must prove refinery capacity or resale agreement
• Strategic Reserves: Some countries mandate minimum storage (90-day supply)
• Environmental Compliance: Spill prevention plans, insurance requirements

Tanker Requirements

• Vessel Types: VLCC (2 million barrels), Suezmax (1 million), Aframax (700,000)
• Insurance: P&I (Protection & Indemnity) + Hull & Machinery + Cargo insurance (2-3% of cargo value)
• Security: Armed guards recommended in Gulf of Guinea (piracy hotspot)
• Terminal Access: Pre-approval required, pilot fees $5,000-15,000 per vessel
• Documentation: Bill of Lading, Certificate of Quality, Certificate of Quantity, Insurance certificate

Typical Freight Costs

Note: Costs exclude insurance (2-3% of cargo value), terminal fees ($0.10-0.15/bbl), demurrage charges ($25,000-50,000/day for delays), and pilotage fees. Piracy insurance adds $50,000-150,000 per voyage in high-risk Gulf of Guinea waters.

Loading Terminals

• Nigeria: Bonny Terminal, Forcados Terminal, Qua Iboe Terminal, Brass Terminal
• Angola: Malongo Terminal, Cabinda Terminal, Palanca Terminal, Dalia FPSO
• Ghana: Jubilee FPSO (offshore), OCTP FPSO (TEN fields)