The Nigerian National Petroleum Corporation Limited (NNPCL) says it has commenced sales of its latest crude oil grade, the Utapate crude oil blend, to international refiners, six months after it began exploration.
It stated that the breakthrough provides a significant boost to Nigeria’s crude oil output, revenue generation, and economic growth initiatives.
According to a statement issued by Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer, on Wednesday in Abuja, the new product was introduced before a crowded audience of European crude oil marketers at the ongoing Argus European Crude Conference in London, England.
It should be noted that in July 2024, the NNPCL and its partner, Sterling Oil Exploration and Energy Production Company Limited, unveiled the Utapate crude oil mix, following the lifting of the first cargo of 950,000 barrels bound for Spain.
The Utapate crude oil blend, which is produced from the Utapate field in Akwa Ibom State’s Oil Mining Lease 13, is identical to the Nembe crude oil grade.
It has a low sulphur content of 0.0655 percent and a low carbon footprint due to the elimination of flare gas, making it well suited to the demands of major European purchasers.
In his remarks, Nicholas Foucart, Managing Director of NNPC E&P Limited, described the introduction of the Utapate crude oil blend into the market as an important milestone for Nigeria’s crude oil exports to the global energy market.
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.”
He went on to say that since its introduction to the global crude oil market, the Utapate crude oil mix has received a great response due to its very appealing attributes.
Foucart stated that the OML 13, which is wholly operated by NEPL and Natural Oilfield Services Limited, a subsidiary of SEEPCO Limited, has massive reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.
“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.
He stated that the Utapate crude oil terminal is sustainable, inexpensive, and fully in compliance with stringent environmental rules and sustainability principles, particularly those targeted at lowering carbon emissions and other environmental impacts.
Also speaking, Lawal Sade, Managing Director of NNPC Trading Limited, stated that the pricing structure of the Utapate crude oil blend is similar to that of Amenam crude because it is a light, sweet crude that is highly sought after by refiners around the world due to its low sulphur content, efficient yield of high-value products, API gravity, and other similarities.
He stated that in introducing the new crude oil mix to the global market, the NNPCL aimed to maximise value for both its producers and counterparties around the globe.
The Utapate field development plan, which ran from 2013 to 2019, called for transitioning wells and facilities from swamp or marine to land operations.
The Utapate crude oil blend enters the market just a year after the NNPCL announced the debut of Nembe crude oil, which is produced by the NNPC/Aiteo-operated OML 29 joint venture.
