Kehinde Fajobi
NNPC Ltd has introduced the Utapate crude oil blend to the international market, marking a significant milestone in Nigeria’s crude oil production and export.
The announcement was made on Wednesday during the Argus European Crude Conference in London, where industry leaders gathered to explore global market opportunities.
The Utapate crude oil blend, first introduced in July 2024, followed the export of an initial 950,000-barrel cargo to Spain.
Speaking at the event, Managing Director of NNPC E&P Ltd, Nicholas Foucart, highlighted the rapid progress in production.
“Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) with minimum downtime,” Foucart said.
“So far, we have exported five cargoes, largely to Spain and the East Coast of the United States, while two additional cargoes are secured for November and December 2024. This represents a significant boost to Nigeria’s crude oil export to the global market.”
NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, shared the press statement, revealing that the Utapate blend has been well-received globally due to its attractive qualities, including low sulphur content and environmental sustainability.
Foucart further explained the vast potential of the Oil Mining Lease (OML) 13, where the Utapate blend is produced.
Operated by NNPC E&P Ltd and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, the field boasts 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas reserves.
“We have ongoing projects to increase production from the current 40,000 bpd to 50,000 bpd by January 2025 and up to 80,000 bpd by the end of the year,” Foucart added.
“The Utapate crude oil terminal is sustainable, affordable, and fully compliant with rigorous environmental regulations and sustainability principles, especially those aimed at reducing carbon emissions.”
Addressing the pricing structure, Managing Director of NNPC Trading Ltd, Lawal Sade, compared the Utapate blend to the Amenam crude grade.
“The Utapate crude is a light, sweet crude highly sought after by refiners due to its low sulphur content, efficient yield of high-value products, and API gravity,” Sade noted.
He added that NNPC Trading plans to establish term contracts for Utapate crude oil cargoes, particularly targeting European and US East Coast refineries.
Produced in Akwa Ibom State’s OML 13, the Utapate blend meets the specifications of major international buyers, with a sulphur content of 0.0655% and a low carbon footprint achieved through gas flare elimination.
Foucart emphasised that the partnership between NNPC E&P Ltd and NOSL is committed to safe, environmentally responsible operations that benefit local communities.
The Utapate field development plan, executed between 2013 and 2019, included converting swamp/marine wells and facilities to land-based operations.
“The development involved a multi-rig drilling campaign for 40 wells and significant infrastructure such as production facilities, storage tanks, pipelines, and an offshore loading platform,” Foucart said.
This latest achievement follows NNPC Ltd’s launch of the Nembe crude oil blend in 2023, reaffirming the company’s dedication to increasing Nigeria’s oil reserves and enhancing its position in the global energy market.