…First Cargo Hits Spain, More To Depart Nigeria’s Shores In August, September
The Nigerian National Petroleum Company Ltd has announced the introduction of Utapate crude oil blend, a new crude oil grade into the international crude oil market.
From Oil Mining Lease (OML) 13, fully operated by NEPL, NNPC Ltd’s upstream subsidiary, the Utapate crude oil blend commenced operations in July 2024, as its first cargo headed for Spain.
Located offshore Akwa Ibom State in Nigeria, Utapate’s current crude oil production is at 28,000 barrels per day, with potentials to increase it to 50,000 barrels per day. Also, the sulphur content of the new crude is 0.0655 per cent.
Spanish oil giant Repsol, won the tender for the initial cargo of 950,000 barrels of the new crude blend which is comparable to the much sought after Amenam crude.
Gulf Transport and Trading, another leading crude oil dealer, have also secured the cargoes’ tenders for August and September 2024.
During the Argus European Crude Conference in London last year, NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).
Similar to the Nembe crude oil grade, the Utapate crude oil blend has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.
This remarkable achievement signals the commitment of the NNPC Ltd to increase Nigeria’s crude oil production and grow reserves through the development of new assets.
The introduction of the blend is coming at a time when the lingering conflict between Russia and Ukraine has made many European countries to seek for crude oil products that aligns with their market preference.
The crude industry is changing faster than ever before as markets in Europe become more tied in with global crude oil trade, and with the introduction of these grades, Nigeria’s crude oil grade is on its way to becoming a steady preference for many European refiners.
From all indication, the move is a significant development for Nigeria, as it will help to diversify the country’s crude oil exports and reduce its reliance on a few key grades.
It is also a sign that Nigeria is committed to increasing oil production and attracting new investment in the sector.