- The Nigerian National Petroleum Company Limited (NNPC) launched a new crude oil grade, Utapate
- It made its launch into the international crude oil market, shipping its first cargo to Spain
- The low-sulphur and low-carbon crude has attracted major buyers in Europe
The Nigerian National Petroleum Company Limited (NNPC) has announced the introduction of the Utapate crude oil blend, a new crude oil grade, into the international crude oil market. Produced from Oil Mining Lease 13, Utapate began production in July 2024, with a current output of 28,000 barrels per day.
The Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, who made the announcement in a statement on August 5 in Abuja, said the product was extracted from its Oil Mining Lease 13, a facility fully operated by NNPC Exploration and Production Limited.
According to him, the Utapate crude oil blend commenced operations in July, with its first cargo exported to Spain.
Soneye revealed that OML 13 is located offshore Akwa Ibom State with a current crude oil production of 28,000 barrels per day.
“Utapate’s current crude oil production is at 28,000 barrels per day, with the potential to increase it to 50,000 barrels per day. Also, the sulphur content of the new crude is 0.0655 per cent,” he said.
The low-sulphur crude has attracted major buyers in Europe, including Repsol and Gulf Transport and Trading, signalling NNPC's commitment to boosting Nigeria's crude oil production and reserves.
He said, “Spanish oil giant Repsol won the tender for the initial cargo of 950,000 barrels of the new crude blend, which is comparable to the much sought-after Amenam crude. Gulf Transport and Trading, another leading crude oil dealer, has also secured the cargoes’ tenders for August and September 2024.”
The NNPC spokesman recalled that during the “Argus European Crude Conference in London last year, NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease 29 Joint Venture.”
He pointed out that the Utapate crude oil blend which is similar to the Nembe crude oil grade, “has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the requirements of major buyers in Europe.”
Soneye noted that “this remarkable achievement signals the commitment of the NNPC Ltd to increase Nigeria’s crude oil production and grow reserves through the development of new assets.”
Similarly, the NNPCL also said it would do everything possible to achieve 2mbpd.
Experts said this is the only way the NNPC could conveniently sell 450,000mbpd to the Dangote refinery and other local refineries as directed by President Bola Tinubu.
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In an earlier report, TheRadar reported that the Nigerian National Petroleum Company Limited (NNPC) had declared a state of emergency on the country’s crude oil production, noting that the country needs to increase its production capacity.
However, while the industry players are reluctant to act accordingly, Nigerians cried out over the development expressing their concerns about the ongoing national economic crisis.