By Adanna Nnamabi, Abuja
In a major boost for Nigeria’s crude oil production, revenue generation, and economic growth, NNPC Ltd has officially unveiled its latest crude oil grade, the Utapate crude oil blend, to the international crude oil market.
This was disclosed in a statement issued by NNPC Spokesperson Olufemi Soneye on Wednesday.
Soneye recalled 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 lifting of the first cargo of 950,000 barrels, which was headed for Spain.
He said that during a ceremony held at the Argus European Crude Conference in London, United Kingdom, on Wednesday, the Managing Director of NNPC E&P Limited (NEPL), Mr. Nicholas Foucart, described the introduction of the Utapate crude oil blend into the market as a significant milestone for Nigeria’s crude oil export to the global energy market.
“Since we started producing from the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) with minimal downtime. So far, we have exported five cargoes, mainly to Spain and the East Coast of the United States. Two more cargoes have been secured for November and December 2024, representing a significant boost to Nigeria’s crude oil export,” Foucart told a packed audience of European crude oil marketers.
He added that since its introduction into the global market, the Utapate crude oil blend has received a positive response, due to its highly attractive qualities.
Foucart revealed that the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, has huge reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet (tcf) of gas.
“We have ongoing projects aimed at increasing our production from the current 40,000 bpd to 50,000 bpd by January 2025, and to 60,000 bpd to 65,000 bpd by June 2025. Essentially, we are targeting an increase in production to 80,000 bpd by the end of 2025,” Foucart added.
He emphasized that the Utapate crude oil terminal is sustainable, affordable, and fully compliant with rigorous environmental regulations and sustainability principles, particularly those focused on reducing carbon emissions and other ecological effects.
Also speaking, the Managing Director of NNPC Trading Ltd (NTL), Mr. Lawal Sade, explained that the pricing structure of the Utapate crude oil blend is similar to that of Amenam crude. It is a light, sweet crude highly sought after by refiners worldwide due to its low sulphur content, efficient yield of high-value products, API gravity, and other similarities.
He said that in bringing the new crude oil blend to the global market, NNPC Ltd aims to optimize value for both producers and counterparties worldwide.
“To ensure the predictability and sustainability of supply, NNPC Trading intends to run a term contract on the Utapate crude oil blend cargoes, principally targeting off-takers from European and East Coast US refineries.”
“Produced from the Utapate field in OML 13, located in Akwa Ibom State, Nigeria, the Utapate crude oil blend is similar to the Nembe crude oil grade. It has a low sulphur content of 0.0655% and a low carbon footprint due to flare gas elimination, making it ideal for major buyers in Europe,” Sade added.
The NNPC E&P Ltd and NOSL partnership is also committed to operating in a manner that is safe, environmentally responsible, and beneficial to local communities.
The Utapate field development plan, executed between 2013 and 2019 and approved in October, included converting wells and facilities from swamp/marine to land-based operations. The plan involved a multi-rig drilling campaign for 40 wells and the development of significant infrastructure, such as production facilities, storage tanks, a subsea pipeline, and an offshore loading platform to facilitate crude oil evacuation and loading.
The entry of the Utapate crude oil blend into the market comes barely a year after NNPC Ltd launched Nembe crude oil, produced by the NNPC/Aiteo-operated Oil Mining Lease (OML) 29 Joint Venture (JV).
“This remarkable achievement signals NNPC Ltd’s commitment to increasing Nigeria’s crude oil production and growing its reserves through the development of new assets,” the statement concluded.