Onome Amuge
The Nigerian National Petroleum Corporation Limited (NNPCL) has announced the commencement of sales of its newly discovered Utapate crude oil blend to international refiners.
The development was achieved just six months after the company started exploring the oil field, as the corporation raises efforts to increase Nigeria’s crude oil production, generate additional revenue, and ultimately contribute to the country’s economic growth.
Olufemi Soneye,NNPC’s chief corporate communications officer, in a statement, announced that the corporation’s latest crude oil grade, Utapate, was unveiled in front of a large audience of European crude oil marketers at the Argus European Crude Conference in London, England.
The Utapate crude oil blend, introduced by NNPC Ltd. and Sterling Oil Exploration and Energy Production Company Limited, emerged in July 2024 when the first cargo, containing 950,000 barrels of the new crude, was successfully lifted for export to Spain.
The Utapate crude oil blend is produced in Akwa Ibom State’s Oil Mining Lease 13, specifically from the Utapate field.
According to industry experts, the crude has similarities with the Nembe grade, featuring a low sulphur content of 0.0655 per cent and an environmentally-friendly low carbon footprint due to the elimination of flare gas during production.
Speaking at the unveiling ceremony, Nicholas Foucart, managing director of NNPC E&P Limited, commended the introduction of the Utapate crude oil blend as a major accomplishment for Nigeria’s position in the global energy market.
“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 stated.
Foucart added that the introduction of the Utapate crude oil blend into the global market has received positive feedback due to the unique and desirable qualities of this new Nigerian crude oil product.
According to the NNPC MD, the response to Utapate crude oil blend in the international market has been positive, largely due to the blend’s desirable qualities.
He noted further that NEPL, in partnership with Natural Oilfield Services Limited, a subsidiary of SEEPCO Limited, operates OML 13, which holds reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of natural gas.
Foucart emphasised NNPC’s plans to ramp up production capacity and highlighted the sustainable and environmentally-conscious nature of the Utapate crude oil terminal.
He disclosed that NNPC’s current production stands at 40,000 barrels per day (bpd), and the company is planning to expand to 50,000 bpd by January 2025 and 60,000 to 65,000 bpd by June 2025, with a target of 80,000 bpd by the end of 2025.
Lawal Sade, managing director of NNPC Trading Limited, discussed the pricing structure of the Utapate crude oil blend and its desirable characteristics that make it attractive to refiners.
According to Sade, the Utapate crude oil blend shares a similar pricing structure to Amenam crude, another sweet crude that is popular with refiners worldwide due to its low sulphur content, efficient yield of high-value products, API gravity and other similarities.
He explained that NNPC Ltd.’s motivation for introducing Utapate crude oil blend to the global market was to optimise value for both producers and refiners worldwide.
