The Nigerian National Petroleum Corporation Limited (NNPCL) has officially introduced its latest crude oil blend, the Utapate, to the international market. The announcement was made at the Argus European Crude Conference in London, England, where NNPCL showcased the new grade to a large audience of European crude oil marketers. This move marks a significant step for Nigeria as it seeks to increase its presence in the global oil market.
According to Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer, the Utapate crude oil blend, extracted from the Utapate field in Oil Mining Lease (OML) 13, located in Akwa Ibom State, has the potential to become a key export product for Nigeria. The blend has a low sulphur content of 0.0655%, making it highly attractive to European buyers who prioritize environmentally friendly oil options. Furthermore, the product is seen as a cleaner alternative due to a reduced carbon footprint, as it is produced with the elimination of flare gas.
Foucart, Managing Director of NNPC E&P Limited, emphasized that the launch of Utapate crude oil is a significant achievement in Nigeria’s efforts to boost its crude oil export and economic growth. Since production began in May 2024, the country has rapidly increased output, reaching 40,000 barrels per day with minimal downtime. So far, five cargoes of Utapate crude have been exported, primarily to Spain and the East Coast of the United States, and two additional cargoes are scheduled for November and December 2024.
The Utapate blend is part of Nigeria’s larger strategy to revitalize its oil sector and expand its crude oil exports. The field, which is fully operated by NNPC E&P Limited in partnership with Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd., holds substantial reserves, including 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas. These resources provide a strong foundation for the planned production increases.
Foucart outlined ambitious production targets, noting that NNPCL plans to ramp up output to 50,000 barrels per day by January 2025, and further raise it to between 60,000 to 65,000 barrels per day by mid-2025. The long-term goal is to achieve 80,000 barrels per day by the end of 2025, further solidifying Nigeria’s position as a major oil exporter.
The launch of the Utapate crude oil blend represents a critical step for Nigeria’s oil industry, promising to increase production, create jobs, and boost national revenue. As the global demand for low-sulphur and environmentally friendly crude oil continues to rise, the Utapate blend offers Nigeria a valuable opportunity to meet international energy market needs while contributing to the country’s economic development.
