See more as NNPC begins sale of Utapate crude oil blend to international market

• Nigeria has started selling a new crude oil grade, "Utapate," featuring lower sulfur content produced in Akwa Ibom state
• Exploration of Utapate crude oil started this year, and refineries in Spain and the US were the first buyers
• There are now more refineries across Europe interested due to the crude's suitability for producing cleaner fuels

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian National Petroleum Corporation Limited (NNPCL) has commenced international sales of its latest crude oil grade, the Utapate crude oil blend.

According to a statement by Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer the new grade was unveiled to European crude oil marketers at the ongoing Argus European Crude Conference in London.

NNPCL begins sale of Utapate crude to international refiners Photo credit: DNY59
Source: Getty Images

The development comes six months after exploration began at the Utapate field in Akwa Ibom State.

NNPC is excited about the prospect of Utapate crude oil blend.

NNPC E&P Limited Managing Director, Nicholas Foucart, speaking at the event said the introduction of the Utapate crude oil blend into the market as a significant milestone for Nigeria’s crude oil export to the global energy market. Punch reports.

His words:

"Since production began in May 2024, we have quickly scaled up output to 40,000 barrels per day with minimal interruptions. To date, five cargoes have been exported, primarily to Spain and the U.S. East Coast, with two additional shipments scheduled for November and December 2024, significantly enhancing Nigeria's crude oil presence in the global market.""We are undertaking several projects to boost production from the current 40,000 barrels per day (bpd) to 50,000 bpd by January 2025 and 60,000–65,000 bpd by June 2025, with a target of reaching 80,000 bpd by the end of 2025."

Utapate crude oil blend pricing

Also speaking, Lawal Sade, Managing Director of NNPC Trading Limited, noted that the pricing structure of the Utapate crude oil blend is comparable to that of Amenam crude.

This light, sweet crude is highly attractive to refiners worldwide due to its low sulphur content, efficient yield of high-value products, and favourable API gravity.

He emphasised that by introducing the blend to the global market, NNPCL aims to optimize value for both its producers and international partners.

Nigeria discovers another oil well

Legit.ng previously reported that the Nigerian National Petroleum Company Exploration and Production Limited (NNPC E&P Ltd), a subsidiary of NNPC and Natural Limited Oilfield Services Limited (NOSL), announced the successful commencement of oil production at Oil Mining Lease (OML) 13 in Akwa Ibom state.

The NNPC announced this in a statement signed by its chief corporate communications officer, Olufemi Soneye, on Sunday, May 12, 2024.

It said the production, which began on May 6, 2024, with about 6,000 barrels of oil, is expected to be ramped up to 40,000 barrels daily by May 27, 2024.

Source: Legit.ng