NNPCL begins Utapate crude sale to global refiners

The Nigerian National Petroleum Corporation Limited has officially started selling its latest crude oil grade, the Utapate crude oil blend, to international refiners after six months of exploration. This development is a significant step towards boosting Nigeria’s crude oil production, revenue generation, and economic growth.

The Utapate crude oil blend, produced from the Utapate field in Oil Mining Lease 13 in Akwa Ibom State, is similar to the Nembe crude oil grade. It has a low sulfur content of 0.0655% and a reduced carbon footprint due to flare gas elimination, meeting the required specifications of major European buyers.

The Managing Director of NNPC E&P Limited, Nicholas Foucart, hailed the introduction of the Utapate crude oil blend into the market as a crucial milestone for Nigeria’s crude oil export industry. Since its production began in May 2024, the Utapate blend has garnered positive feedback from the international crude oil market for its appealing qualities.

Foucart mentioned plans to increase production levels from 40,000 barrels per day to 50,000 barrels per day by January 2025 and further to 60,000 to 65,000 barrels per day by June 2025. The goal is to reach production levels of 80,000 barrels per day by the end of 2025.

The Utapate crude oil terminal is designed to be sustainable, cost-effective, and compliant with stringent environmental regulations, focusing on reducing carbon emissions and other ecological impacts.

The pricing structure of the Utapate crude oil blend is comparable to that of Amenam crude, as it is a light, sweet crude with low sulfur content, making it highly desirable for refiners worldwide. NNPC Trading Limited’s Managing Director, Lawal Sade, emphasized the aim of optimizing value for producers and counterparties globally through the introduction of this new crude oil blend.

The Utapate field was developed between 2013 and 2019, involving the conversion of wells and facilities from swamp or marine to land-based operations. This entry into the market follows the launch of Nembe crude oil by the NNPC/Aiteo operated OML 29 Joint Venture just a year ago.