The Nigerian National Petroleum Corporation Limited has announced the commencement of sales for its new crude oil grade, the Utapate crude oil blend, to international refiners.
This marks a significant milestone, coming six months after the start of exploration efforts.
NNPCL described the development as a major boost for Nigeria’s crude oil production, revenue generation, and overall economic growth.
A statement signed by the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, stated on Wednesday in Abuja that the Utapate crude oil blend was officially unveiled to a packed audience of European crude oil marketers at the ongoing Argus European Crude Conference in London, England.
In July 2024, the NNPCL, in partnership with Sterling Oil Exploration and Energy Production Company Limited, introduced the Utapate crude oil blend.
This followed the successful lifting of the first cargo, consisting of 950,000 barrels, which was shipped to Spain.
Produced from the Utapate field in Oil Mining Lease 13, located in Akwa Ibom State, the Utapate crude is similar to the Nembe crude oil grade. It features a low sulfur content of 0.0655%, and its environmentally-friendly profile, which includes flare gas elimination, contributes to a reduced carbon footprint.
The Managing Director, NNPC E&P Limited, Nicholas Foucart, in his address, highlighted the introduction of the Utapate crude oil blend as a major milestone for Nigeria’s crude oil export, underscoring its significance in expanding the country’s presence in the global energy market.
Foucart said, “Since we started producing the Utapate in May 2024, we have rapidly ramped up production to 40,000 barrels per day with minimum downtime. So far, we have exported five cargoes, largely to Spain and the East Coast of the United States; while two more additional cargoes have been secured for November and December 2024, representing a significant boost to Nigeria’s crude oil export to the global market.”
He added that since its introduction into the global market, the Utapate crude oil blend has received a positive response from international buyers, owing to its highly attractive qualities, which have positioned it as a sought-after product in the global crude oil market.
Foucart said the OML 13, fully operated by NEPL and Natural Oilfield Services Limited, a subsidiary of SEEPCO Limited, has huge reserves of 330 million barrels of crude oil, 45 million barrels of condensate and 3.5 tcf of gas.
“We have several ongoing projects to increase our production from the current 40,000 bopd to 50,000 bopd by January 2025, and 60,000 bopd to 65,000 bopd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000 bonds by the end of 2025,” Foucart noted.
He emphasized that the Utapate crude oil terminal is not only sustainable and affordable but also fully compliant with stringent environmental regulations and sustainability principles, particularly those focused on reducing carbon emissions and minimizing other ecological impacts.
Meanwhile, the Managing Director of NNPC Trading Limited, Lawal Sade, stated that the pricing structure of the Utapate crude oil blend closely mirrors that of Amenam crude, as both are light, sweet crudes highly favored by refiners worldwide.
This preference is due to their low sulfur content, efficient yield of high-value products, favorable API gravity, and other shared characteristics that make them highly desirable in global markets.
He explained that by introducing the new Utapate crude oil blend to the global market, NNPCL aimed to optimize value for both its producers and counterparties worldwide.
The Utapate field development plan, carried out between 2013 and 2019, involved converting wells and facilities from swamp or marine-based operations to land-based ones, enhancing operational efficiency and infrastructure.
