NNPCL Begins Sale Of Utapate Crude Oil Blend To International Refiners

The Nigerian National Petroleum Corporation Limited (NNPCL) has commenced initial sale of its newest crude oil grade, the Utapate crude oil blend, to international refiners, following a six-month exploration period.

This development was announced in a statement made available to newsmen in Abuja on Wednesday (today) by Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL.

This development represents a significant advancement for Nigeria’s crude oil production, revenue generation, and economic growth initiatives.

Soneye noted that the new product was presented to a large audience of European crude oil marketers at the ongoing Argus European Crude Conference in London, England.

It is important to recall that in July 2024, the NNPCL, in collaboration with its partner, Sterling Oil Exploration and Energy Production Company Limited, launched the Utapate crude oil blend, which followed the successful lifting of the first cargo of 950,000 barrels destined for Spain.

The Utapate crude oil blend, produced from the Utapate field in Oil Mining Lease 13 in Akwa Ibom State, is comparable to the Nembe crude oil grade.

It features a low sulphur content of 0.0655 percent and a reduced carbon footprint due to the elimination of flare gas, aligning well with the specifications sought by major European buyers.

Nicholas Foucart, the Managing Director of NNPC E&P Limited, emphasized in his address that the launch of the Utapate crude oil blend marks a significant milestone for Nigeria’s crude oil exports to the global energy market.

Foucart said, “Since we started producing the Utapate in May 2024, we have rapidly ramped up production to 40,000 barrels per day 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.”

He stated that following its launch in the global market, the Utapate crude oil blend has received a favorable reception from the international crude oil market, attributed to its exceptionally appealing characteristics.

Foucart mentioned that OML 13, which is entirely managed by NEPL and Natural Oilfield Services Limited, a subsidiary of SEEPCO Limited, possesses substantial reserves amounting to 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.

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

The Utapate crude oil terminal has been described as sustainable, cost-effective, and fully compliant with stringent environmental regulations and sustainability standards, particularly those focused on minimizing carbon emissions and other ecological impacts.

Additionally, Lawal Sade, the Managing Director of NNPC Trading Limited, noted that the pricing model for the Utapate crude oil blend closely resembles that of Amenam crude.

This is due to its classification as a light, sweet crude, which is in high demand among refiners globally because of its low sulfur content, high yield of valuable products, API gravity, and other comparable characteristics.

In introducing this new crude oil blend to the international market, NNPCL aims to maximize value for both its producers and partners worldwide.

The development plan for the Utapate field, which took place from 2013 to 2019, involved transitioning wells and facilities from swamp or marine settings to land-based operations.

The launch of the Utapate crude oil blend in the market follows closely on the heels of NNPCL’s announcement regarding the introduction of Nembe crude oil, which is produced through the NNPC/Aiteo-operated OML 29 Joint Venture.

Tags: Nigerian National Petroleum Company Limited (NNPCL)