In a significant development for Nigeria’s energy sector, NNPC Ltd has officially launched the Utapate crude oil blend to the international market, bolstering the country’s crude oil production, revenue potential, and economic growth.
The Utapate crude oil blend, developed in partnership with Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd, was first introduced in July 2024, with an inaugural shipment of 950,000 barrels destined for Spain.
On Wednesday, at the Argus European Crude Conference in London, NNPC E&P Limited (NEPL) Managing Director, Nicholas Foucart, described the global rollout as a milestone in Nigeria’s crude oil export journey.
Since production began in May 2024, output from the Utapate Field has surged to 40,000 barrels per day (bpd), with uninterrupted operations. To date, five cargoes have been successfully exported, primarily to Spain and the U.S. East Coast. With two additional shipments scheduled for November and December 2024, the Utapate crude is making a strong impression on the global energy market.
The Utapate field, situated in Oil Mining Lease (OML) 13 and operated by NEPL and Natural Oilfield Services Ltd (NOSL), holds an estimated 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.
Plans are in place to increase production to 50,000 bpd by January 2025, with an ambitious target of reaching 80,000 bpd by the end of the year.
Utapate crude has garnered positive market feedback for its premium qualities. With a low Sulphur content of 0.0655% and minimal carbon emissions due to gas flare elimination, it aligns with the specifications of major international refiners. Its pricing, similar to the highly sought-after Amenam crude, makes it a valuable addition to the market.
NNPC Trading Ltd Managing Director, Lawal Sade, emphasised the company’s commitment to optimizing value for producers and counterparties. He revealed plans for term contracts to ensure consistent and reliable supply, targeting European and U.S. East Coast refiners.
The Utapate field development included significant upgrades between 2013 and 2019, transitioning operations from swamp-based to land-based systems. Key infrastructure, including production facilities, storage tanks, pipelines, and offshore loading platforms, ensures sustainable and efficient operations in compliance with global environmental standards.
This launch follows the successful debut of the Nembe crude oil blend in 2023, underscoring NNPC Ltd’s dedication to expanding Nigeria’s crude oil reserves and production capacity. Through innovative projects like the Utapate crude oil blend, NNPC Ltd continues to enhance Nigeria’s position in the global energy market.
Shola Akinyele
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