The Nigerian National Petroleum Corporation Limited (NNPCL) has announced the commencement of sales for its new crude oil grade, the Utapate crude oil blend, to international refiners. This milestone comes six months after the corporation began exploration of the blend, marking a significant step for Nigeria’s oil industry. According to NNPCL, this development is expected to enhance crude oil production, bolster revenue, and contribute to the nation’s economic growth. A statement issued by Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL, revealed the announcement was made during the Argus European Crude Conference in London, England.
The Utapate crude oil blend, derived from the Utapate field in Akwa Ibom State’s Oil Mining Lease 13, boasts unique attributes, including low sulfur content at 0.0655 percent and reduced carbon emissions due to flare gas elimination. These qualities make it particularly appealing to European refiners who prioritize environmentally friendly and efficient crude options. The blend mirrors the characteristics of the Nembe crude oil grade and has already seen significant market interest. In July 2024, NNPCL and its partner, Sterling Oil Exploration and Energy Production Company Limited, launched the product, with the inaugural shipment of 950,000 barrels sent to Spain.
Nicholas Foucart, Managing Director of NNPC Exploration and Production Limited, highlighted the rapid production scale-up since May 2024, reaching 40,000 barrels per day with minimal downtime. He shared that five cargoes had already been exported, mainly to Spain and the United States, with additional shipments scheduled for later in the year. Foucart emphasized the substantial reserves within OML 13, which include 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas. Plans are underway to increase daily production to 65,000 barrels by mid-2025 and potentially 80,000 barrels by year-end.
Lawal Sade, Managing Director of NNPC Trading Limited, noted that the Utapate crude oil blend offers pricing similar to the highly sought-after Amenam crude due to its light, sweet qualities and efficient yield of high-value products. He affirmed that the introduction of this blend aligns with the corporation’s goal of maximizing value for producers and global buyers. The Utapate field’s development involved converting wells from marine to land-based operations, enhancing sustainability and efficiency. This launch follows the earlier debut of the Nembe crude oil blend, underscoring NNPCL’s expanding portfolio in the international energy market.
