NNPCL Unveils Utapate Crude Oil Blend, Targets Enhanced Production, Global Market Expansion
The Nigerian National Petroleum Company Limited (NNPCL) has officially introduced its latest crude oil grade, the Utapate crude oil blend, to the international market.
The unveiling took place at the Argus European Crude Conference in London, where industry leaders gathered to explore new opportunities in the energy sector.
The Utapate crude oil blend, produced from the Utapate field in Oil Mining Lease (OML) 13, Akwa Ibom State, is expected to bolster Nigeria’s crude oil production, drive revenue growth, and support economic development.
This blend is particularly notable for its low sulphur content and reduced carbon footprint, aligning with global sustainability standards.
Speaking at the event, Mr Nicholas Foucart, Managing Director of NNPC Exploration & Production Limited (NEPL), hailed the market entry of the Utapate blend as a significant milestone.
“Since we commenced production from the Utapate Field in May 2024, we have rapidly scaled up to 40,000 barrels per day (bpd) with minimal downtime,” Foucart revealed.
He added that five cargoes, primarily destined for Spain and the United States East Coast, have already been exported. Two additional shipments are scheduled for November and December 2024. “This represents a significant boost to Nigeria’s crude oil export capabilities,” he noted.
Foucart further detailed plans to enhance production, aiming to reach 50,000 bpd by January 2025 and 80,000 bpd by the end of 2025.
The Utapate field, boasting reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas, positions Nigeria for long-term energy market competitiveness.
The Utapate crude oil blend has garnered positive reception in the global market due to its light sweet crude properties.
According to Mr Lawal Sade, Managing Director of NNPC Trading Limited, the blend’s pricing structure mirrors that of the Amenam crude oil grade.
Its low sulphur content, API gravity, and efficient yield of high-value products make it a favourite among refiners.
NNPCL plans to implement term contracts for Utapate crude, targeting off-takers in Europe and US East Coast refineries to ensure supply predictability and sustainability.
This strategy underscores the company’s commitment to optimising value for producers and global counterparties.
The Utapate crude oil terminal adheres to rigorous environmental standards, focusing on flare gas elimination to reduce carbon emissions.
The NNPC E&P Ltd and its partner, Natural Oilfield Services Ltd (NOSL), a subsidiary of Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd, remain committed to environmentally responsible operations and benefiting local communities.
The field’s development, executed between 2013 and 2019, involved significant infrastructure investments, including production facilities, storage tanks, subsea pipelines, and an offshore loading platform.
These efforts have transitioned operations from swamp and marine-based systems to land-based facilities, enhancing efficiency and sustainability.
NNPCL’s Commitment to Growth
The Utapate blend marks the second major crude oil grade launched by NNPCL in recent years, following the debut of the Nembe crude oil grade in 2023.
This progress highlights NNPCL’s dedication to increasing Nigeria’s crude oil production, expanding reserves, and tapping into new markets.
“This achievement underscores our resolve to develop new assets and enhance Nigeria’s position in the global energy market,” Foucart remarked, signalling the nation’s drive towards economic advancement through innovative energy solutions.
Source; Oriental News
