Nigerian National Petroleum Corporation Limited has announced the initiation of sales for its new crude oil grade, the Utapate crude oil blend, to international refiners, following six months of exploration activities.
This development marks a significant advancement for Nigeria's crude oil production, revenue generation, and overall economic growth initiatives.
In a statement released by Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL, on Wednesday in Abuja, it was noted that the new product was presented to a large audience of European crude oil marketers at the ongoing Argus European Crude Conference in London, England.
It is important to recall that in July 2024, NNPCL, in collaboration with its partner, Sterling Oil Exploration and Energy Production Company Limited, launched the Utapate crude oil blend after successfully lifting the first cargo of 950,000 barrels destined for Spain.
The Utapate crude oil blend, sourced from the Utapate field in Oil Mining Lease 13 in Akwa Ibom State, is comparable to the Nembe crude oil grade. It features a low sulphur content of 0.0655 percent and a reduced carbon footprint due to the elimination of flare gas, aligning well with the specifications sought by major European buyers.
Nicholas Foucart, Managing Director of NNPC E&P Limited, highlighted the introduction of the Utapate crude oil blend as a pivotal achievement for Nigeria's crude oil exports to the global energy market.
Foucart stated, “Since we commenced production of the Utapate in May 2024, we have swiftly increased output to 40,000 barrels per day with minimal downtime. To date, we have exported five cargoes, primarily to Spain and the East Coast of the United States, with two additional cargoes scheduled for November and December 2024, representing a substantial enhancement to Nigeria’s crude oil exports on the global stage.”
Since its launch in the global market, the Utapate crude oil blend has received a favorable reception from international buyers, attributed to its appealing characteristics.
Foucart mentioned that OML 13, which is entirely managed by NEPL and Natural Oilfield Services Limited, a subsidiary of SEEPCO Limited, boasts substantial reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.
“We are currently engaged in multiple projects aimed at boosting our production from the existing 40,000 barrels of oil per day (bopd) to 50,000 bopd by January 2025, and further to between 60,000 bopd and 65,000 bopd by June 2025. Ultimately, our goal is to reach 80,000 bopd by the end of 2025,” Foucart stated.
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| Managing Director, NNPC E&P Limited, Mr Nicholas Foucart [L], and the Managing Director, NNPC Trading Limited, Mr Lawal Sade [R], during the official unveiling of the Utapate crude oil blend held on the sidelines of the 2024 Argus European Crude Conference in London on Wednesday, November 20, 2024 |
He emphasized that the Utapate crude oil terminal is designed to be sustainable, cost-effective, and fully adheres to stringent environmental regulations and sustainability standards, particularly those focused on minimizing carbon emissions and other ecological impacts.
Additionally, Lawal Sade, Managing Director of NNPC Trading Limited, noted that the pricing framework for the Utapate crude oil blend is comparable to that of Amenam crude, as it is a light, sweet crude that is highly desirable among refiners globally due to its low sulfur content, high yield of valuable products, API gravity, and other shared attributes.
He explained that by introducing this new crude oil blend to the global market, NNPCL aims to maximize value for both its producers and partners worldwide.
The development plan for the Utapate field, carried out from 2013 to 2019, involved transitioning wells and facilities from swamp or marine settings to land-based operations.
The introduction of the Utapate crude oil blend into the market occurs just under a year after NNPCL revealed the launch of Nembe crude oil, which is produced by the NNPC/Aiteo-operated OML 29 Joint Venture.