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The Nigerian National Petroleum Company Limited (NNPC Ltd) has officially introduced the Utapate crude oil blend to the global energy market, marking a significant milestone in Nigeria’s oil export strategy.
The Nigerian National Petroleum Company Limited (NNPC Ltd) has officially introduced the Utapate crude oil blend to the global energy market, marking a significant milestone in Nigeria’s oil export strategy. The production from the Utapate field, which began in May 2024, has already reached 40,000 barrels per day (bpd) and is set to increase to 80,000bpd by the end of 2025.
The Managing Director of NNPC E&P Limited (NEPL), Nicholas Foucart, speaking at the Argus European Crude Conference in London on Wednesday, described the launch as a significant milestone for Nigeria’s crude oil export to the global energy market. He said that production from the Utapate field, which began in May 2024, has already reached 40,000 barrels per day (bpd) and is set to increase to 80,000bpd by the end of 2025.
Since NNPC started producing the Utapate Field in May 2024, it rapidly ramped up production to 40,000 barrels per day (bpd) with minimum downtime. So far, NNPC shipped 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, said Foucart. He added that since its introduction into the global market, the Utapate crude oil blend has enjoyed a positive response from the international crude oil market, due to its highly attractive qualities.
The Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, boasts huge reserves of 330 million barrels of crude oil, 45 million barrels of condensate and 3.5 tcf of gas. NNPC Trading Ltd, highlighted the competitive appeal of the Utapate crude, likening its pricing structure to the Amenam grade, and revealed plans to introduce term contracts targeting European and US refineries. By bringing the new crude oil blend to the global market, NNPC Ltd wanted to optimise value for both its producers and counterparties across the globe. To ensure predictability and sustainability of supply, NNPC Trading intends to run a term contract on the Utapate crude oil blend cargoes, principally targeting off-takers from European and the US East Coast refineries.
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The Utapate crude oil blend, produced from the Utapate field has a low sulphur content of 0.0655 per cent, similar to the Nembe crude oil grade. The low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.
