The Nigerian National Petroleum Company Limited (NNPC Ltd.) has officially introduced its latest crude oil grade, the Utapate crude oil blend, to the international market. This announcement, made at the Argus European Crude Conference in London on Wednesday, marks a pivotal milestone in Nigeria’s efforts to boost its crude oil exports globally.
Mr. Nicholas Foucart, Managing Director of NNPC Exploration and Production (E&P) Ltd., called the launch a significant development for the country’s crude oil export strategy. The launch of the Utapate blend follows its initial introduction in July, a collaboration between NNPC Ltd. and Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd. The first cargo, carrying 950,000 barrels, was shipped to Spain, marking the beginning of a new chapter for Nigeria’s oil exports.
Foucart highlighted the rapid progress since the start of production at the Utapate Field in May 2024, with output now reaching 40,000 barrels per day (bpd), and minimal downtime. The field has already exported five cargoes, primarily to Spain and the U.S. East Coast. Looking ahead, NNPC Ltd. has secured two additional cargoes for export in November and December 2024, reinforcing the blend’s growing presence in the global oil market.
“This is a major boost for Nigeria’s crude oil production and economic growth,” said Foucart in a statement issued by NNPC Ltd. “We are on track to ramp up production further, targeting 50,000 bpd by January 2025, and aiming for 60,000 to 65,000 bpd by mid-2025, with a longer-term goal of reaching 80,000 bpd by the end of 2025.”
The Utapate crude oil, produced from Oil Mining Lease (OML) 13, operated by NNPC Ltd. and its partner, Natural Oilfield Services Ltd. (NOSL), a subsidiary of SEEPCO Ltd., boasts impressive reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet (tcf) of gas.
One key feature of the Utapate blend is its high appeal to international refiners. According to Mr. Lawal Sade, Managing Director of NNPC Trading Ltd. (NTL), the pricing and characteristics of the Utapate blend are comparable to those of Amenam crude, another highly sought-after Nigerian grade. “The Utapate blend’s light sweet quality, low sulphur content, and efficient yield make it a preferred choice for refineries worldwide,” said Sade.
NNPC Ltd. is working to secure long-term contracts for the Utapate blend, targeting refineries in Europe and along the U.S. East Coast to ensure a steady, predictable supply. The blend’s low sulphur content of 0.0655% and minimal carbon footprint, achieved by eliminating gas flaring, also align with global sustainability standards, a major factor for major European buyers.
The Utapate field, located in Akwa Ibom, Nigeria, was developed between 2013 and 2019, with the final plan approved in October 2019. It includes extensive infrastructure, such as a multi-rig drilling campaign for 40 wells, production facilities, a subsea pipeline, and an offshore loading platform designed to facilitate smooth crude oil evacuation and loading.
This latest crude oil blend arrives less than a year after NNPC Ltd. launched the Nembe crude oil grade from its joint venture with Aiteo at OML 29. The Utapate crude oil blend further strengthens Nigeria’s position in the global energy market as it continues to diversify its production offerings and increase its footprint in the international oil trade.
Related topic:
Crude Oil Prices Test Key Support Level Amid Market Pressure
Exxon to Exit Suriname Exploration Block, Transfers Stake to Petronas
