In a significant development for Nigeria’s oil industry, the Nigerian National Petroleum Company Limited (NNPC Ltd.) has introduced its latest crude oil blend, the Utapate crude oil, to the global energy market. This milestone underscores Nigeria’s efforts to bolster crude oil production, revenue generation, and economic growth.
The official unveiling took place at the Argus European Crude Conference in London, United Kingdom, on November 20, 2024. The Managing Director of NNPC Exploration and Production Limited (NEPL), Mr. Nicholas Foucart, described the Utapate crude as a transformative addition to Nigeria’s oil export portfolio.
“Since commencing production at the Utapate Field in May 2024, we’ve scaled up output to 40,000 barrels per day (bpd) with minimal downtime. To date, we have exported five cargoes primarily to Spain and the U.S. East Coast, with two additional shipments planned for November and December,” said Foucart.
Foucart emphasized the crude blend’s positive reception globally, attributed to its desirable qualities such as low sulphur content and efficient yield of high-value products.
Utapate crude is produced from the Oil Mining Lease (OML) 13 in Akwa Ibom State, a field operated by NNPC E&P Ltd. in partnership with Natural Oilfield Services Ltd. (NOSL), a subsidiary of Sterling Oil Exploration and Energy Production Company (SEEPCO).
OML 13 boasts significant reserves, including:
– 330 million barrels of crude oil
– 45 million barrels of condensate
– 3.5 trillion cubic feet (tcf) of gas
Foucart revealed ambitious production targets, including:
– Increasing output to 50,000 bpd by January 2025
– Reaching 65,000 bpd by mid-2025
– Attaining 80,000 bpd by the end of 2025
The Utapate crude terminal adheres to rigorous environmental standards, prioritizing sustainability and minimizing its carbon footprint, including through gas flare elimination.
Speaking at the event, Mr. Lawal Sade, Managing Director of NNPC Trading Ltd. (NTL), noted that the Utapate crude pricing aligns with the Amenam blend, another light sweet crude highly sought after by global refiners.
“To ensure predictability and sustainability, we aim to establish term contracts for Utapate cargoes, primarily targeting refiners in Europe and the U.S. East Coast,” said Sade.
The Utapate field underwent extensive development between 2013 and 2019, with the plan receiving approval in October 2019. Key initiatives included:
– A multi-rig drilling campaign for 40 wells
– Conversion of facilities from swamp/marine to land-based operations
– Construction of production facilities, storage tanks, subsea pipelines, and offshore loading platforms
These developments enhance crude oil evacuation and streamline loading operations, ensuring the crude blend meets global standards.
This achievement follows the 2023 launch of the Nembe crude oil blend by NNPC and its partner Aiteo. The introduction of Utapate further signals NNPC’s commitment to increasing Nigeria’s crude oil production and reserves through the development of new assets.
NNPC E&P Ltd. and NOSL have also reaffirmed their commitment to environmentally responsible operations and benefiting local communities.
The Utapate crude oil blend, with its strategic advantages and robust development framework, represents a step forward in Nigeria’s drive to solidify its position in the global energy market.
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