By Ayomide Otitoju
Nigeria’s new low-sulphur crude oil grade, Utapate, has seen its daily average production rise to 32,000 barrels per day, according to a report from the Federal Government. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed that 996,070 barrels of Utapate were produced in August, a significant increase from the 754,222 barrels produced in July.
Production figures for Utapate have shown consistent growth since its debut. In June, 567,302 barrels were produced, and 309,434 barrels were pumped in May when the crude was first introduced. The Nigerian National Petroleum Company Limited (NNPC) began sales of the new crude oil blend to the international market in August.
NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, highlighted that Utapate’s production is currently at 28,000 barrels per day with plans to ramp up to 50,000 barrels per day. The crude has a sulphur content of 0.0655 percent. Spanish oil giant Repsol won the tender for the initial cargo of 950,000 barrels, and Gulf Transport and Trading secured cargoes for August and September 2024.
Reports indicate that Utapate’s first export cargo was loaded last month by NNPC and its venture partner, Natural Oilfield Services Limited.
In contrast, the NUPRC report noted that the Ajapa field did not produce any oil in August, following a production of 18,783 barrels in July and 24,000 barrels in June. Other fields, including Ima, Anambra Basin, Ukpokiti, and Asaramatoru, have yet to produce any oil this year.
Overall, Nigeria’s crude oil production rose from 1.307 million barrels per day in July to 1.352 million barrels per day in August, according to the Organisation of the Petroleum Exporting Countries (OPEC). This increase of 45,000 barrels per day was based on direct communication with the Nigerian government, contrasting with the Federal Government’s claim of nearing 1.6 million barrels per day.
