- Utapate crude oil blend in NNPC, launched in July 2024, has seen successful exports to Spain and the U.S. East Coast.
- The Utapate blend’s low sulphur content and favourable refining qualities make it highly attractive to global refineries.
Nigeria’s crude oil production and revenue generation, the Nigerian National Petroleum Company Limited (NNPC), has introduced its new crude oil grade, the Utapate crude oil blend, to the international market. This move comes as a significant boost to Nigeria’s economic growth efforts.
Launched in July 2024, the Utapate blend resulted from a partnership between NNPC Ltd and Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd. The first cargo of 950,000 barrels was shipped to Spain, marking the successful debut of the crude on the global stage.
Nicholas Foucart, Managing Director of NNPC E & P Limited, hailed the introduction of the Utapate crude blend as a landmark achievement for Nigeria’s oil exports. Since production began at the Utapate Field in May 2024, output has rapidly ramped to 40,000 barrels per day (bpd) with minimal downtime.
Five cargoes have been exported, mainly to Spain and the United States East Coast, with two additional cargoes scheduled for export in November and December 2024. The blend’s positive reception in the international market is a testament to its desirable qualities.
Foucart also highlighted that the Utapate crude is produced from Oil Mining Lease (OML) 13, operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO. The lease boasts substantial reserves, including 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet (tcf) of gas.
Ongoing projects aim to increase production from 40,000 bpd to 50,000 bpd by January 2025 and to 60,000–65,000 bpd by mid-2025. The company’s ultimate target is to reach 80,000 bpd by the end of 2025.
The Utapate crude oil terminal is designed to be sustainable, cost-effective, and fully compliant with stringent environmental regulations, especially those targeting reductions in carbon emissions and minimising ecological impacts.
Lawal Sade, Managing Director of NNPC Trading Ltd (NTL), explained that the pricing structure of the Utapate crude is similar to that of Amenam crude. As a light, sweet oil with low sulphur content, it is beautiful to refiners due to its efficient yield of high-value products and favourable API gravity. Through strategic partnerships, NNPC Ltd aims to optimise value for its producers and global counterparts.
To ensure a consistent and reliable supply, NNPC Trading plans to establish a term contract for Utapate crude oil, primarily targeting off-takers in Europe and the U.S. East Coast. The Utapate blend, produced from the Utapate field in OML 13, Akwa Ibom State, shares similarities with the Nembe crude grade, offering low sulphur content (0.0655%) and a reduced carbon footprint, aligning perfectly with the specifications required by major European buyers.