Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials. Organic compounds like nitrogen, oxygen, and sulfur typically make-up between 6%-10% of crude oil while metals such as copper, nickel, vanadium and iron account for less than 1% of the total composition. After crude oil is extracted from the ground, it is sent to a refinery where different parts of the crude oil are separated into useable petroleum products. These petroleum products include gasoline, distillates such as diesel fuel and heating oil, jet fuel, petrochemical feedstocks, waxes, lubricating oils, and asphalt.

Nigeria ranks as Africa’s largest producer of oil and the sixth-largest oil-producing country in the world. With a maximum crude oil production capacity of 2.5 million barrels per day. Nigeria produces only high value, low sulphur content, light crude oils like Antan Blend, Bonny Light, Bonny Medium, Brass Blend, Escravos Light, Forcados Blend, IMA, Odudu Blend, Pennington Light, Qua-Iboe Light and Ukpokiti.

• Cost Insurance and Freight (CIF): The seller handles everything from loading the vessel, paying for insurance and shipping the product to the country the buyer wants it delivered.
• Freight On Board (FOB): The seller is responsible for handling the transportation of the goods to the port of shipment and loading cost. Once the goods are loaded on the ship, all liabilities transfer to the buyer. Liabilities like unloading, insurance, marine freight transport and transporting products to its destination.
• Tanker Take Over (TTO): The buyer takes over the hiring of a loaded tanker along with the product it contains.
• Tanker To Tanker (TTT): The buyer hires his vessel and uses the same to purchase products from the seller.