The Nigerian National Petroleum Corporation Limited (NNPCL) has announced the official launch of its latest crude oil grade, the Utapate crude oil blend, to the international crude oil market.
This development represents a significant boost to Nigeria’s crude oil production, revenue generation, and economic growth initiatives, according to the NNPCL.
In a statement issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Wednesday in Abuja, the NNPCL noted that the new product was unveiled to a packed audience of European crude oil marketers at the ongoing Argus European Crude Conference in London, England.
It is worth recalling that in July 2024, NNPC Ltd. and its partner, the Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd., introduced the Utapate crude oil blend following the export of the first cargo of 950,000 barrels destined for Spain.
During a ceremony at the Argus European Crude Conference on Wednesday, the Managing Director of NNPC E & P Limited (NEPL), Mr Nicholas Foucart, described the market introduction of the Utapate crude oil blend as a pivotal milestone for Nigeria’s crude oil exports.
“Since production began at the Utapate Field in May 2024, we have rapidly scaled up to 40,000 barrels per day (bpd) with minimal downtime. To date, five cargoes have been exported, primarily to Spain and the East Coast of the United States, with two additional shipments scheduled for November and December 2024. This represents a considerable boost to Nigeria’s crude oil exports,” Foucart told the audience of European crude oil marketers.
He further highlighted that the Utapate crude oil blend has been well-received in the international market due to its highly attractive qualities.
Foucart also detailed the significant resources within Oil Mining Lease (OML) 13, operated jointly by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd. These include reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.
“We are undertaking several projects to raise production from 40,000bopd to 50,000bopd by January 2025, and to 60,000bopd to 65,000bopd by June 2025. Ultimately, we aim to increase output to 80,000bopd by the end of 2025,” Foucart added.
He also emphasised that the Utapate crude oil terminal is sustainable, cost-effective, and fully compliant with stringent environmental regulations and sustainability standards, particularly those aimed at reducing carbon emissions.
Speaking at the event, the Managing Director of NNPC Trading Ltd. (NTL), Mr Lawal Sade, stated that the pricing structure for the Utapate crude oil blend is similar to that of Amenam crude. Being a light, sweet crude with low sulphur content, it is highly valued by refiners worldwide due to its efficient yield of high-value products and favourable characteristics such as API gravity.
To ensure consistent and sustainable supply, Sade added that NTL plans to implement a term contract for Utapate crude oil blend cargoes, targeting primarily European and US East Coast refineries.
The Utapate crude oil blend, produced from the Utapate field in OML 13 in Akwa Ibom State, Nigeria, shares similarities with the Nembe crude oil grade. It has a low sulphur content of 0.0655% and a low carbon footprint, aligning with the specifications of major European buyers.
The partnership between NNPC E&P Ltd. and NOSL is committed to safe, environmentally responsible operations that also benefit local communities.
The development of the Utapate field, executed between 2013 and 2019 and approved in October, involved converting wells and facilities from swamp and marine-based operations to land-based setups. This included a multi-rig drilling campaign for 40 wells and the establishment of substantial infrastructure such as production facilities, a storage tank, a subsea pipeline, and an offshore loading platform for crude oil evacuation.
The launch of the Utapate crude oil blend comes less than a year after NNPC Ltd. introduced the Nembe crude oil grade, produced through the NNPC/Aiteo-operated OML 29 Joint Venture.