NNPC’s Utapate crude grade hits global market

. National oil company targets 80,000bpd by 2025

The Nigerian National Petroleum Company (NNPC) Limited has officially introduced the Utapate crude oil blend, the country’s latest crude oil grade, before the international crude oil market.

This development could pose a significant boost to Nigeria’s volatile crude production, revenue generation, and economic growth efforts.

Utapate crude oil blend is the latest offering from NNPC Limited and its partner, Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd.

This was made known at a ceremony held at the Argus European Crude Conference taking place in London, United Kingdom, on Wednesday, according to the release signed by Olufemi O. Soneye, chief corporate communications officer, NNPC.

Speaking at the event, Nicholas Foucart, the managing director of NNPC E&P Limited (NEPL), described the introduction of the Utapate crude oil blend into the market as a significant milestone for Nigeria’s crude oil export to the global energy market.

“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. So far, we have exported 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,” Foucart told a audience of European crude oil marketers.

He noted 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.

Foucart also said the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, boasts a huge reserve of 330 million barrels of crude oil reserves, 45 million barrels of condensate and 3.5 trillion cubic feet of gas.

“We have a number of ongoing projects to increase our production from the current 40,000 bopd to 50,000 bopd by January 2025 and 60,000 bopd to 65,000 bopd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000bopd by the end of 2025,” Foucart added.

Also speaking, Lawal Sade, the managing director of NNPC Trading Ltd (NTL), said the pricing structure of the Utapate crude oil blend is similar to that of Amenam crude as it is a light sweet crude, which is highly sought after by refiners across the world due to its low sulphur content, the efficient yield of high-value products, API gravity, and other similarities.

He said in 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.

He added 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 the European and the US East Coast refineries.