By Ayomide Otitoju
The Nigerian National Petroleum Corporation Limited (NNPCL) has officially introduced its latest crude oil grade, the Utapate crude oil blend, to the international market at the Argus European Crude Conference in London, United Kingdom.
The unveiling marks a significant boost to Nigeria’s crude oil production, export capacity, and revenue generation efforts. According to a statement issued by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, on Wednesday, the launch was attended by European crude oil marketers.
Production Milestone
The Utapate crude oil blend, first produced in May 2024 in collaboration with Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd., has rapidly gained traction in the global market. Managing Director of NNPC Exploration and Production Limited (NEPL), Mr. Nicholas Foucart, noted that production has reached 40,000 barrels per day (bpd), with plans to scale up to 50,000 bpd by January 2025 and 80,000 bpd by the end of 2025.
Since the initial shipment of 950,000 barrels to Spain in July 2024, five cargoes have been exported, primarily to Spain and the U.S. East Coast. Two additional shipments are scheduled for November and December.
“The Utapate blend has been well-received internationally due to its light, sweet crude characteristics, low sulphur content of 0.0655%, and efficient yield of high-value products,” Foucart said.
Strategic Advantage
The Utapate field, located in Oil Mining Lease (OML) 13 in Akwa Ibom State, boasts reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas. The development of the field has prioritized sustainability, with projects aimed at eliminating gas flaring and adhering to environmental regulations.
The Managing Director of NNPC Trading Ltd. (NTL), Mr. Lawal Sade, emphasized that the Utapate blend aligns with global refiners’ specifications and is comparable to Amenam crude, offering a highly sought-after product for European and U.S. markets.
To ensure supply consistency, NTL plans to implement term contracts for Utapate shipments, targeting major refineries in Europe and the U.S.
Infrastructure and Development
The development plan for the Utapate field included a multi-rig drilling campaign for 40 wells, land-based facility upgrades, and infrastructure such as subsea pipelines and an offshore loading platform. This transition from swamp/marine to land-based operations ensures efficient and environmentally responsible production.
The Utapate crude oil blend follows the successful market entry of the Nembe crude oil blend, launched in 2023 from OML 29 under the NNPC/Aiteo joint venture.
Commitment to Community and Sustainability
NNPCL and SEEPCO have pledged to operate in a manner that benefits local communities while maintaining high environmental and safety standards. The Utapate blend’s entry into the market reinforces Nigeria’s position as a key player in the global energy market.
With its promising qualities and strategic development, the Utapate crude oil blend is poised to deliver significant economic benefits to Nigeria while addressing global energy demands.
