By [Your Name] – The Nigerian National Petroleum Corporation Limited (NNPCL) has introduced its latest crude oil grade, the Utapate crude oil blend, to the international market. The announcement was made at the Argus European Crude Conference in London, marking a significant milestone for Nigeria’s crude oil export.
In a statement issued on Wednesday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, shared that the product was unveiled before a large audience of European crude oil marketers. The Utapate crude oil is derived from the Utapate field in Oil Mining Lease (OML) 13, located in Akwa Ibom State, and is similar to the Nembe crude oil grade, known for its quality and low sulfur content.
Key Features of Utapate Crude Oil Blend
- Low Sulfur Content: The Utapate blend has a sulfur content of just 0.0655%, which meets the stringent environmental standards set by major European buyers.
- Reduced Carbon Footprint: The crude blend has been produced with efforts to eliminate flare gas, which reduces its overall carbon footprint, making it a more environmentally friendly option for the global market.
- Export Growth: Since its first export in July 2024, the Utapate blend has seen strong demand, particularly in Spain and the East Coast of the United States, with five cargoes already exported.
Production and Future Plans
The Utapate crude oil blend has ramped up production swiftly, reaching 40,000 barrels per day (bpd) with plans to double output. Nicholas Foucart, the Managing Director of NNPC E&P Limited, revealed that by 2025, production from the Utapate field is expected to increase to 80,000 bpd.
“Our production from Utapate began in May 2024, and we’ve already scaled it to 40,000 bpd, with minimal downtime,” Foucart noted. “We are targeting 50,000 bpd by January 2025, 60,000-65,000 bpd by June 2025, and 80,000 bpd by the end of 2025.”
The production comes from OML 13, which boasts substantial reserves, including 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.
Boosting Nigeria’s Oil Exports
The introduction of the Utapate blend is seen as a major step in boosting Nigeria’s crude oil exports, contributing to the country’s economic growth and revenue generation. The national oil company is also targeting an overall increase in its crude production to 2 million bpd by the end of 2024, with ongoing improvements to its production capacity.
Soneye stated that this move could also enhance Nigeria’s foreign exchange earnings, which could help stabilize the naira amid ongoing fluctuations in the local currency.
With its continued investments in new crude grades like Utapate, and ongoing production enhancements, NNPCL is positioning Nigeria to increase its footprint in the global energy market. The company’s ambitious targets for the Utapate crude oil blend align with the nation’s broader objectives to boost oil revenue, enhance economic growth, and diversify its energy exports.
