KEY POINTS
- Utapate crude aims for 80,000 barrels per day by 2025.
- Global refiners prefer Utapate for its low sulfur and efficiency.
- NNPC prioritizes sustainability and market expansion with Utapate blend.
In a big win for Nigeria’s oil industry, the Nigerian National Petroleum Company Limited (NNPC) has officially introduced its newest crude oil grade, the Utapate crude oil blend. The unveiling happened during the 2024 Argus European Crude Conference in London, a major platform for global crude players.
NNPC’s Spokesperson Olufemi Soneye recalled that the first shipment of the Utapate crude oil blend, totaling 950,000 barrels, was made in July this year and was sent to Spain. The new crude grade is already getting attention for its premium quality and is poised to boost Nigeria’s oil exports.
Growing production and global reach
Nicholas Foucart, Managing Director of NNPC Exploration & Production Limited (NEPL), shared updates on the blend’s production. He revealed that production from the Utapate Field began in May 2024 and has quickly ramped up to 40,000 barrels per day (bpd).
“We’ve exported five cargoes so far, mostly to Spain and the East Coast of the United States,” Foucart said at the event. “Two more are lined up for November and December, showing the strong demand for this crude.”
Foucart also outlined bold plans to increase production significantly. By January 2025, output is expected to hit 50,000 bpd, rising to 60,000–65,000 bpd by mid-year, and reaching 80,000 bpd by the end of 2025.
Why Utapate stands out
The Utapate crude oil blend is turning heads for good reason. According to Lawal Sade, Managing Director of NNPC Trading Limited, it’s a light, sweet crude with a low sulfur content of just 0.0655%. This makes it highly desirable for refiners, particularly in Europe and the United States, as it produces high-value products while meeting environmental standards.
As reported by The Sun, Sade explained that the crude’s pricing structure is competitive, comparable to Nigeria’s Amenam blend, which has long been a favorite for refiners worldwide. NNPC plans to offer term contracts for Utapate crude to ensure a stable and predictable supply for buyers.
What’s more, Utapate crude is produced with sustainability in mind. Flare gas elimination and other eco-friendly measures have reduced its carbon footprint, making it an attractive choice for environmentally conscious buyers.
A big step for Nigeria’s oil sector
The development of the Utapate field, located in Akwa Ibom State’s OML 13, represents a massive investment in infrastructure and sustainability. Between 2013 and 2019, NNPC and its partner, Natural Oilfield Services Ltd (a subsidiary of SEEPCO), converted facilities from swamp and marine setups to land-based operations. The project included drilling 40 wells, building storage tanks, and installing pipelines and offshore loading platforms.
The Utapate crude oil blend is the latest in NNPC’s efforts to expand Nigeria’s energy portfolio, following the successful launch of the Nembe crude oil grade last year. This marks another step in Nigeria’s drive to boost oil production, grow reserves, and strengthen its position in the global energy market.
“This achievement highlights NNPC’s commitment to improving Nigeria’s energy output while maintaining sustainable practices,” Soneye said.
