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Nigeria’s crude oil industry has achieved a significant milestone with the Nigerian National Petroleum Company Ltd. (NNPCL) introducing its newest crude oil grade, the Utapate crude oil blend, to the international market.
The unveiling, which took place at the Argus European Crude Conference in London, marked a pivotal moment for the nation’s oil production, export capabilities, and economic growth.
NNPC E&P Limited (NEPL) Managing Director, Mr Nicholas Foucart, described the launch as transformative, highlighting the rapid production growth since the Utapate Field began operations in May 2024.
“Production has surged to 40,000 barrels per day (bpd) with minimal downtime. So far, we have exported five cargoes to Spain and the U.S. East Coast, with two additional shipments planned for November and December 2024,” said Foucart.
The Utapate crude oil blend has garnered positive feedback in the global market due to its premium qualities. Operated jointly by NEPL and Natural Oilfield Services Ltd. (NOSL), a subsidiary of Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd., the Utapate field boasts reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.
Foucart announced plans to increase production to 50,000bpd by January 2025, 65,000bpd by June 2025, and a projected 80,000bpd by year-end 2025.
“The Utapate crude oil terminal adheres to strict environmental standards, focusing on sustainability and reducing carbon emissions,” he added.
NNPC Trading Ltd. Managing Director, Mr Lawal Sade, emphasised the market appeal of the Utapate crude, a light sweet blend comparable to Amenam crude. Its low sulphur content (0.0655%) and high-value product yield make it highly desirable to refiners worldwide.
NNPC plans to run term contracts for the Utapate crude, ensuring steady supply to European and U.S. East Coast refineries.
The Utapate field, located in Akwa Ibom State within Oil Mining Lease (OML) 13, underwent extensive development between 2013 and 2019. The initiative included converting swamp and marine wells to land-based operations, drilling 40 wells, and constructing key infrastructure like production facilities, storage tanks, subsea pipelines, and offshore loading platforms.
This milestone follows the 2023 introduction of Nembe crude oil from OML 29, a joint venture between NNPC and Aiteo. The achievements underscore NNPC’s commitment to boosting Nigeria’s oil production and reserves through innovative asset development.
