The Nigerian National Petroleum Corporation Limited has commenced the sale of its latest crude oil grade, the Utapate crude oil blend, to international refiners, in order to boost crude oil production and revenue generation.
This development comes just six months after the beginning of exploration activities in the Utapate field.
The announcement was made in a statement by the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, on Wednesday in Abuja.
The Utapate blend was introduced to a gathering of European crude oil marketers at the ongoing Argus European Crude Conference in London, England, signaling its official debut on the global market.
This follows the successful lifting of the first cargo of Utapate crude, which was dispatched to Spain in July 2024.
The blend is produced from the Utapate field in Oil Mining Lease 13, located in Akwa Ibom State, and is noted for its similarity to the Nembe crude oil grade.
It boasts a low sulfur content of 0.0655%, as well as a reduced carbon footprint thanks to flare gas elimination, making it particularly appealing to major European buyers.
Managing Director of NNPC E&P Limited, Nicholas Foucart, emphasized the significance of this development during his speech.
He described the introduction of Utapate as a major achievement for Nigeria’s crude oil export. Since production began in May 2024, the production rate has quickly reached 40,000 barrels per day, with minimal downtime.
Foucart highlighted that five cargoes have already been exported, primarily to Spain and the U.S. East Coast, with plans to export two additional cargoes in November and December 2024.
This expansion of Nigeria’s crude oil export reflects the growing demand for the Utapate blend in the international market.
Foucart also mentioned that the Utapate field is rich in resources, with estimated reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.
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.”
To further increase production, NNPCL plans to ramp up output from the current 40,000 barrels per day (bopd) to 50,000 bopd by January 2025 and 60,000 to 65,000 bopd by mid-2025. Ultimately, the company aims to reach an output of 80,000 bopd by the end of 2025.
“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.
The development plan for the Utapate field, executed between 2013 and 2019, involved transitioning wells and facilities from swamp and marine operations to land-based infrastructure, enhancing the sustainability and efficiency of the field’s operations.
The Utapate crude oil terminal is designed to be sustainable and affordable, fully adhering to rigorous environmental regulations, especially those aimed at reducing carbon emissions and other ecological impacts.
This aligns with global sustainability efforts and the NNPCL’s commitment to responsible oil production.
In addition, the Managing Director of NNPC Trading Limited, Lawal Sade, discussed the pricing structure of the Utapate crude oil blend, noting that it is similar to the Amenam crude.
Utapate is classified as a light, sweet crude oil, known for its low sulfur content and high efficiency in yielding valuable products. This makes it highly attractive to refiners worldwide. Sade reiterated that the goal of introducing Utapate to the global market is to optimize value for both the producers and their international partners.
The launch of the Utapate crude blend further strengthens Nigeria’s position in the global oil market, building on the success of the earlier launch of the Nembe crude oil, produced by the NNPC/Aiteo-operated OML 29 Joint Venture, just a year ago.
The entry of these new crude oil grades is seen as a strategic move by NNPCL to diversify and expand Nigeria’s crude oil exports in the competitive international market.
