NNPCL Expands Oil Market Reach With Sale Of New Utapate Crude Blend

NNPCL Expands Oil Market Reach With Sale Of New Utapate Crude Blend

The Nigerian National Petroleum Corporation Limited (NNPCL) has officially begun the sale of its new crude oil grade, the Utapate crude oil blend, to international refiners, following a successful six-month exploration phase. This announcement was made on Wednesday in Abuja by…RAED MORE…

Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer.

The launch marks a significant step for Nigeria’s crude oil production, with the aim of boosting revenue and supporting the country’s economic growth. The new blend was introduced to European crude oil marketers at the ongoing Argus European Crude Conference in London.

Launched in July 2024 in collaboration with Sterling Oil Exploration and Energy Production Company Limited, the Utapate crude oil blend follows the successful lifting of 950,000 barrels bound for Spain. The crude, produced from the Utapate field in Oil Mining Lease 13, Akwa Ibom State, is comparable to Nembe crude and is highly valued for its low sulphur content (0.0655%) and its reduced carbon footprint due to the elimination of flare gas, making it an attractive option for European buyers.

Nicholas Foucart, Managing Director of NNPC E&P Limited, highlighted the success of Utapate production, which has quickly ramped up to 40,000 barrels per day with minimal downtime. Five cargoes have been exported so far, mainly to Spain and the U.S. East Coast, with two additional cargoes scheduled for shipment in late 2024.

OML 13, managed by NEPL and Natural Oilfield Services Limited (a subsidiary of SEEPCO), holds substantial reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas. The field’s output is expected to increase to 50,000 barrels per day by January 2025, with projections of 60,000-65,000 barrels per day by mid-2025.

The Utapate terminal is designed to be sustainable and cost-effective, meeting stringent environmental standards, including minimizing carbon emissions. Lawal Sade, Managing Director of NNPC Trading Limited, stated that the pricing model for the Utapate crude blend is similar to that of Amenam crude, a light, sweet crude in high demand due to its desirable characteristics.

NNPCL’s introduction of Utapate crude to the international market is part of its broader strategy to maximize value for global refiners and enhance its partnership with producers worldwide.

This initiative follows closely after NNPCL’s announcement of the introduction of Nembe crude oil, produced through its partnership with Aiteo in the OML 29 Joint Venture.

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