The Nigerian National Petroleum Corporation Limited (NNPC Ltd.) has introduced its latest crude oil blend, the Utapate crude oil grade, to the global energy market, marking a significant milestone in the nation’s crude oil production and export efforts.
Unveiled at the prestigious Argus European Crude Conference in London, the Utapate crude oil blend has already gained global recognition, with five cargoes exported to Spain and the United States since production began in May 2024. Two additional cargoes are scheduled for export in November and December 2024, according to Mr. Nicholas Foucart, Managing Director of NNPC E & P Limited (NEPL).
“Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) with minimal downtime. The market response has been overwhelmingly positive due to its highly attractive qualities,” said Foucart, addressing European crude oil marketers.
The Utapate field, located in OML 13 in Akwa Ibom State, is a joint operation between NEPL and Natural Oilfield Services Ltd. (NOSL), a subsidiary of Sterling Oil Exploration & Energy Production Company (SEEPCO). The field boasts reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet (tcf) of gas.
Highlighting future plans, Foucart added, “We aim to increase production to 50,000bopd by January 2025, 65,000bopd by mid-2025, and 80,000bopd by the end of 2025. These targets reflect our commitment to maximizing Nigeria’s oil production capabilities.”
Mr. Lawal Sade, Managing Director of NNPC Trading Ltd., emphasised the commercial appeal of the Utapate crude oil blend, describing it as a light, sweet crude with low sulfur content and a minimal carbon footprint. “Its pricing structure is competitive and mirrors that of Amenam crude. To ensure sustainability, we plan to implement term contracts targeting refineries in Europe and the US East Coast,” Sade noted.
The Utapate crude oil grade is the second major crude launch by NNPC Ltd. within a year, following the introduction of the Nembe crude oil grade. Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., described this development as “a testament to NNPC’s commitment to enhancing Nigeria’s crude oil production and reserves.”
The Utapate field’s development involved a multi-rig drilling campaign for 40 wells and significant infrastructure investments, including production facilities, storage tanks, subsea pipelines, and offshore loading platforms.
Soneye reaffirmed the company’s dedication to sustainable practices, stating, “The Utapate terminal is fully compliant with environmental regulations, and our operations are conducted with a focus on safety, environmental responsibility, and community benefits.”
The global energy market is poised to benefit from this new offering, which aligns with the specifications of major European refiners while boosting Nigeria’s revenue generation and economic growth.
