NNPCL begins sale of Utapate crude to international refiners
The Nigerian National Petroleum Corporation Limited has announced the initiation of sales for its new crude oil grade, the Utapate crude oil blend, to global refiners, six months after commencing exploration activities.
This advancement represents a significant enhancement for Nigeria’s crude oil production, revenue generation, and economic growth initiatives.
A statement from the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, released on Wednesday in Abuja, indicated that the product was presented to a large crowd of European crude oil marketers at the Argus European Crude Conference currently taking place in London, England.
It is worth recalling that in July 2024, NNPCL, in partnership with the Sterling Oil Exploration and Energy Production Company Limited, launched the Utapate crude oil blend, marking the delivery of the first shipment of 950,000 barrels destined for Spain.
Extracted from the Utapate field located in Oil Mining Lease 13 in Akwa Ibom State, the Utapate crude oil blend resembles the Nembe crude oil grade and features a low sulphur content of 0.0655 percent, along with a minimal carbon footprint due to the elimination of flare gas, thus aligning well with the specifications demanded by major European buyers.
Nicholas Foucart, the Managing Director of NNPC E&P Limited, articulated that the market introduction of the Utapate crude oil blend represents a monumental achievement for Nigeria’s crude oil exports in the international energy market.
Foucart stated, “Since we began producing the Utapate in May 2024, we have swiftly increased production to 40,000 barrels per day with minimal interruptions. Thus far, we have sent five cargoes out, primarily to Spain and the U.S. East Coast; in addition, two more cargoes have been planned for November and December 2024, marking a considerable enhancement for Nigeria’s crude oil exports in the worldwide market.”
He further noted that since its global market introduction, the Utapate crude oil blend has received a favorable reaction due to its appealing attributes.
Foucart also mentioned that OML 13, which is entirely operated by NEPL and Natural Oilfield Services Limited, a subsidiary of SEEPCO Limited, holds substantial reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.
“We have several ongoing initiatives aimed at raising our output from the current level of 40,000 barrels per day to 50,000 barrels per day by January 2025, and to 60,000 to 65,000 barrels per day by June 2025. Ultimately, we aim to increase production opportunities to reach 80,000 barrels by the end of 2025,” he emphasized.
He highlighted that the Utapate crude oil terminal is sustainable, cost-effective, and completely adheres to the stringent environmental regulations and sustainability protocols, particularly those focused on diminishing carbon emissions and other ecological impacts.
Additionally, Lawal Sade, Managing Director of NNPC Trading Limited, remarked that the pricing model of the Utapate crude oil blend is comparable to the Amenam crude since it is a light, sweet crude that is in high demand among refiners globally due to its low sulphur content, high-yield efficiency of valuable products, API gravity, and other similarities.
He said that while introducing the new crude oil blend to the global market, NNPCL aims to maximize value for both its producers and counterparts worldwide.
The development plan for the Utapate field, which took place between 2013 and 2019, involved converting wells and facilities from swamp or marine settings to land-based operations.
The introduction of the Utapate crude oil blend to the market comes just under a year after NNPCL publicized the debut of Nembe crude oil, produced by the NNPC/Aiteo-operated OML 29 Joint Venture.
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