See the customers ready to buy as Nigeria discovers new type of crude oil

• Nigeria has introduced a new crude oil grade, "Utapate," featuring lower sulfur content produced in Akwa Ibom State
• The first shipment of Nigerian Utapate crude has departed for Europe, as Spain shows interest due to the crude's suitability for producing cleaner fuels
• NNPC Limited is planning to increase to 50,000 barrels per day as the crude fits perfectly into the required spec of major buyers in Europe

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 (NNPC) Ltd has announced the launch of the Utapate crude oil blend, a new grade of crude oil, into the international market.

Nigeria begins sale of new oil-grade Photo credit: Bloomberg/contributor
Source: Getty Images

The oil is produced from Oil Mining Lease (OML) 13, fully operated by NNPC Ltd’s upstream subsidiary, Nigerian Petroleum Development Company (NEPL).

The Utapate crude oil blend began operations in July 2024, and the first cargo was shipped to Spain.

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Nigeria gets customers

Situated offshore Akwa Ibom State, Nigeria, Utapate's current production stands at 28,000 barrels per day, with plans to boost output to 50,000 barrels per day.

The new crude oil blend boasts a sulphur content of 0.0655%, making it a highly desirable product in the market.

Spanish oil major Repsol secured the initial tender for 950,000 barrels of the Utapate blend, drawing comparisons to the highly sought-after Amenam crude.

Additionally, Gulf Transport and Trading, another prominent crude oil dealer, has obtained tenders for the cargoes for August and September 2024.

More crude oil grade

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.

This remarkable achievement signals the commitment of the NNPC Ltd to increase Nigeria’s crude oil production and grow reserves through the development of new assets.

NNPC declares a state of emergency

Legit.ng earlier reported that the Nigerian National Petroleum Company Limited (NNPC Ltd) declared a state of emergency on crude oil production.

Speaking at the ongoing 2024 Nigeria Oil and Gas (NOG) Energy Week in Abuja on Tuesday, June 2, NNPC Ltd's group chief executive officer, Mele Kyari, declared a decisive move to address forces and challenges hindering crude oil production in the country.

According to the NNPC Limited boss, Nigeria can conveniently produce two million barrels of crude oil daily without deploying new rigs.

Source: Legit.ng