The Nigerian National Petroleum Corporation Limited (NNPCL) has announced the commencement of international sales of its newest crude oil grade, the Utapate crude oil blend, six months after exploration activities began. This development marks a significant boost for Nigeria’s crude oil production, revenue generation, and overall economic growth.
In a statement issued on Wednesday in Abuja by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, the corporation revealed that the product was formally unveiled to European crude oil marketers at the Argus European Crude Conference in London, England.
The Utapate crude oil blend was first introduced in July 2024, following the lifting of an initial cargo of 950,000 barrels destined for Spain. Produced from the Utapate field in Oil Mining Lease (OML) 13, located in Akwa Ibom State, the blend is characterized by its low sulphur content (0.0655%) and low carbon footprint, thanks to flare gas elimination. These features make it a desirable choice for major European buyers, as it aligns with stricter environmental and refining standards.
According to Nicholas Foucart, Managing Director of NNPC Exploration & Production Limited, the market introduction of the Utapate crude oil blend represents a pivotal milestone in Nigeria’s efforts to solidify its presence in the global energy market. The blend is likened to the Nembe crude oil grade in quality and is expected to attract significant interest from international refiners.
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 enjoyed a positive response from the international crude oil market due to its highly attractive qualities.
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 said the Utapate crude oil terminal is sustainable, affordable, and fully compliant with the rigorous environmental regulations and sustainability principles, especially those aimed at reducing carbon emissions and other ecological effects.
Also speaking, the Managing Director of NNPC Trading Limited, Lawal Sade, said the pricing structure of the Utapate crude oil blend is similar to that of Amenam crude as it is a light, sweet crude that is highly sought after by refiners across the world due to its low sulphur content, an efficient yield of high-value products, API gravity, and other similarities.
He said in bringing the new crude oil blend to the global market, the NNPCL wanted to optimize value for both its producers and counterparties across the globe.
The Utapate field development plan, executed between 2013 and 2019, included converting wells and facilities from swamp or marine to land-based operations.
The entry of the Utapate crude oil blend into the market is coming barely a year after the NNPCL announced the launch of Nembe crude oil, produced by the NNPC/Aiteo-operated OML 29 Joint Venture.
