India’s Hindustan Petroleum Corp has purchased two million barrels of Nigeria’s Utapate and Okwuibome crude for delivery in late September, in a deal that highlights continued demand for Nigeria’s premium crude grades from one of Asia’s major refining markets.

The purchase was disclosed by Reuters on Tuesday, citing trade sources familiar with the transaction.

According to the report, HPCL acquired the Nigerian crude grades from commodities trader Glencore through a tender process for HPCL Rajasthan Refinery Ltd.

The report said the two million barrels were purchased for HRRL’s 180,000 barrel-per-day (bpd) refinery in Rajasthan, with the cargoes expected to arrive in late September.

HPCL is one of India’s largest state-owned oil refining and marketing companies.

It owns a 74 per cent stake in HPCL Rajasthan Refinery Ltd, while the Rajasthan state government holds the remaining 26 per cent stake.

The price of the transaction was not disclosed.

Nairametrics reached out to HPCL Deputy General Manager (PRCC), Vinod P. Salunke, and Chief General Manager (CSR & PRCC), Anupam Tiwari, for details on the terms of the purchase and pricing of the cargoes, but had not received a response at the time of filing this report.

The inclusion of Utapate crude in the transaction is particularly significant because it is one of Nigeria’s newest export crude grades.

NNPC Limited and its partner, Sterling Oil Exploration & Energy Production Company (SEEPCO), introduced the Utapate crude oil blend in July 2024 following the lifting of its first cargo of 950,000 barrels, which was shipped to Spain.

Utapate is produced from the Utapate field in OML 13 in Akwa Ibom State and is considered similar in quality to the Nembe crude grade.

The blend has a low sulphur content of about 0.0655 per cent and a relatively low carbon footprint due to flare gas elimination, making it attractive to international refiners seeking cleaner crude grades.

The grade has also become increasingly important in Nigeria’s offshore production portfolio.

In April 2026, when Nigeria’s combined crude oil and condensate production averaged 1.663 million bpd, Utapate delivered 1.78 million barrels during the month, ranking among the country’s leading offshore producing assets.

The Okwuibome field, also located offshore in Akwa Ibom, is another premium Nigerian crude source that has attracted interest from international buyers because of its favourable refining characteristics and export quality.

Nigeria’s crude oil production has shown signs of recovery in 2026.

According to the Organization of Petroleum Exporting Countries (OPEC), the country’s average daily crude oil production increased to 1.530 million barrels per day (bpd) in May 2026, up from 1.489 million bpd in April.

The recovery in production comes as NNPC Limited continues to face earnings pressure despite remaining profitable.

The company recorded N2.28 trillion in profit after tax in the first half of 2026, representing a 35.4 per cent decline from the N3.53 trillion recorded in the corresponding period of 2025.

Despite the year-on-year decline, the state-owned energy company remained profitable throughout the first half of the year, with monthly earnings strengthening from March and reaching a year-high of N535 billion in June.

For Nigeria, the latest purchase by HPCL underscores the growing international market acceptance of newer crude grades such as Utapate and reinforces the importance of export demand in supporting the country’s oil revenue and production recovery efforts.