NNPC introduces Utapate crude to international market, targets 80,000bpd

The Nigerian National Petroleum Company Limited (NNPC Ltd) has officially introduced the Utapate crude oil blend to the global energy market, marking a significant milestone in Nigeria’s oil export strategy.

The company made this disclosure on Wednesday in a statement by its Chief Corporate Communications Officer, Olufemi Soneye.

According to the statement, the Managing Director of NNPC E&P Limited (NEPL), Nicholas Foucart, speaking at the Argus European Crude Conference in London on Wednesday, described the launch as a “significant milestone for Nigeria’s crude oil export to the global energy market.”

He said that production from the Utapate field, which began in May 2024, has already reached 40,000 barrels per day (bpd) and is set to increase to 80,000bpd by the end of 2025.

“Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) with minimum downtime. So far, we have exported five cargoes, largely to Spain and the East Coast of the United States; while two more additional cargoes have been secured for November and December 2024, representing a significant boost to Nigeria’s crude oil export to the global market,” Mr Foucart said.

He added that since its introduction into the global market, the Utapate crude oil blend has enjoyed a positive response from the international crude oil market, due to its highly attractive qualities.

Mr Foucart said the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, boasts huge reserves of 330 million barrels of crude oil, 45 million barrels of condensate and 3.5 tcf of gas.

“We have a number of ongoing projects to increase our production from the current 40,000bopd to 50,000bopd by January 2025 and 60,000bopd to 65,000bopd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000bopd by the end of 2025,” Mr Foucart said.

Lawal Sade, managing director of NNPC Trading Ltd, highlighted the competitive appeal of the Utapate crude, likening its pricing structure to the Amenam grade, and revealed plans to introduce term contracts targeting European and US refineries.

The official said in bringing the new crude oil blend to the global market, NNPC Ltd wanted to optimise value for both its producers and counterparties across the globe.

The NNPC official added that to ensure predictability and sustainability of supply, the NNPC Trading intends to run a term contract on the Utapate crude oil blend cargoes, principally targeting off-takers from European and the US East Coast refineries.

The company had in August announced the introduction of Utapate crude oil blend, a new crude oil grade, into the international market.

The Utapate crude oil blend, produced from the Utapate field in Oil Mining Lease (OML) 13 in Akwa Ibom State, has a low sulphur content of 0.0655 per cent.

“Similar to the Nembe crude oil grade, the Utapate crude oil blend has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe,” Mr Soneye said in August.