- The Nigeria National Petroleum Corporation Limited (NNPCL) has unveiled the Utapate crude oil blend to the global market
- NNPCL hopes to increase production to 80,000 bpd by the end of 2025
- It says the Utapate crude oil blend is competitively priced
The Nigeria National Petroleum Corporation Limited (NNPCL) has officially unveiled its Utapate crude oil blend to the global crude oil market as part of efforts to boost Nigeria’s crude oil production, revenue generation and economic growth.
According to a statement by Olufemi Soneye, the Chief Corporate Communications Officer of NNPC Ltd., the Utapate crude oil grade was unveiled during a ceremony held at the Argus European Crude Conference in London, United Kingdom, on Wednesday, November 20.
At the ceremony, the Managing Director of NNPC E&P Limited (NEPL), Mr Nicholas Foucart, said the introduction of the Utapate crude oil blend into the market is a significant milestone for Nigeria’s crude oil export to the global energy market.
He added that Nigeria currently produces 40,000 barrels per day (bpd) of the crude grade but will increase production to 80,000 bpd by the end of 2025.
Foucart said, “Since we started producing the Utapate field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) 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.
“We have a number of ongoing projects to increase our production from the current 40,000 bpd to 50,000 bpd by January 2025 and 60,000 bpd to 65,000 bpd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000 bpd by the end of 2025.”
‘Utapate crude blend receiving positive response since introduction’ - Foucart
It would be recalled that the NNPCL and its partner, the Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd, introduced the Utapate crude oil blend in July 2024, following the lifting of first cargo of 950,000 barrels to Spain.
Foucart 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, which is due to its highly attractive qualities.
He said the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, boasts huge reserves of 330 million barrels of crude oil, 45 million barrels of condensate and 3.5 tcf of gas.
Foucart added that the Utapate crude oil terminal is sustainable, affordable, and fully compliant with stringent environmental regulations and sustainability principles, especially those aimed at reducing carbon emissions and other ecological effects.
‘Utapate crude is competitively priced’ - Sade
The Managing Director of NNPC Trading Ltd (NTL), Lawal Sade, said the pricing structure of the Utapate crude oil blend is similar to that of Amenam crude as it is light sweet crude, which is highly sought after by refiners across the world due to its low sulphur content, efficient yield of high-value products, API gravity and other similarities.
Sade said the NNPCL considered optimising value for both its producers and counterparties across the globe in bringing the new crude oil blend to the global market.
He added that to ensure predictability and sustainability of supply, NNPC Trading intends to run a term contract on the Utapate crude oil blend cargoes, principally targeting off-takers from European and US East Coast refineries.
About Utapate crude blend
The Utapate crude oil blend is produced from the field in OML 13 in Akwa Ibom State, Nigeria and is similar to the Nembe crude oil grade.
It has a low sulphur content of 0.0655 per cent and a low carbon footprint due to flare gas elimination, which makes it a fit for the required specification of major buyers in Europe.
The Utapate field development plan included converting wells and facilities from swamp/marine to land-based operations. It was executed between 2013 and 2019 and approved in October.
The plan involved a multi-rig drilling campaign for 40 wells and the development of significant infrastructure such as production facilities, storage tanks, a subsea pipeline and an offshore loading platform to facilitate crude oil evacuation and loading.
The introduction of the Utapate crude oil blend into the market comes a year after the NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).
Improved petrol supply: NNPCL seeks private companies to operate Warri, Kaduna refineries
Meanwhile, TheRadar reported that the Nigerian National Petroleum Company Limited (NNPCL) said it wants to engage private companies that will oversee the operation and maintenance of its Warri and Kaduna refineries.
In a circular released on Thursday, August 29, through its official X account, NNPCL said the decision is to ensure reliability, sustainability and improved supply of petrol and enhance energy security.
