On Wednesday, NNPC Limited introduced its Utapate crude oil blend to the international market, five months after the initial cargo was dispatched from Nigeria.
According to a statement from NNPC’s Chief Corporate Communications Officer, Mr. Olufemi Soneye, the new crude grade was officially launched to the global market at a ceremony held during the Argus European Crude Conference in London, United Kingdom.
It is worth noting that in July 2024, NNPC Ltd, in collaboration with its partner, Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd, launched the Utapate crude oil blend after the initial cargo of 950,000 barrels was dispatched to Spain.Currently producing 40,000 barrels per day, NNPC anticipates steady output growth in the coming months, aiming to reach 80,000 barrels per day by the end of 2025.
He stated, “Since commencing production at the Utapate Field in May 2024, we have quickly increased our output to 40,000 barrels per day (bpd) with minimal downtime. To date, we have exported five cargoes, primarily to Spain and the East Coast of the United States. Furthermore, two additional cargoes have been booked for November and December 2024, marking a substantial enhancement of Nigeria’s crude oil exports to the global market.”
In a conversation with European crude oil marketers, Mr. Nicholas Foucart, the Managing Director of NNPC E&P Limited (NEPL), characterized the launch of the Utapate crude oil blend as a major milestone for Nigeria’s crude oil exports to the global energy market.
He noted that since its launch in the global market, the Utapate crude oil blend has received a positive reception from international buyers due to its highly appealing characteristics.Foucart mentioned that the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, contains 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 projects aimed at increasing our production from the current level of 40,000 barrels of oil per day (bopd) to 50,000 bopd by January 2025, and 60,000 to 65,000 bopd by June 2025. Ultimately, we are targeting opportunities to reach 80,000 bopd by the end of 2025,” Foucart added.
In addition, Mr. Lawal Sade, the Managing Director of NNPC Trading Ltd (NTL), noted that the pricing structure for the Utapate crude oil blend is comparable to that of Amenam crude. Both are light sweet crudes that are highly coveted by refiners globally, thanks to their low sulfur content, efficient production of high-value products, API gravity, and various other similarities.
He stated that by introducing the new crude oil blend to the global market, NNPC Ltd aims to maximize value for both its producers and partners worldwide.To ensure a reliable and sustainable supply, NNPC Trading plans to implement term contracts for the Utapate crude oil blend cargoes, primarily targeting buyers from refineries on the European and US East Coast.
Sourced from the Utapate field in OML 13 located in Akwa Ibom State, Nigeria, the Utapate crude oil blend is akin to the Nembe crude oil grade. It features a low sulfur content of 0.0655% and boasts a reduced carbon footprint due to the elimination of flare gas, aligning perfectly with the specifications sought by major buyers in Europe.
The partnership between NNPC E&P Ltd and NOSL is dedicated to operating in a manner that prioritizes safety, environmental responsibility, and benefits to local communities.From 2013 to 2019, the Utapate field development plan was implemented and received approval in October. This plan included the conversion of wells and facilities from swamp/marine to land-based operations.
Key components of the plan included a multi-rig drilling campaign aimed at drilling 40 wells and the development of essential infrastructure, such as production facilities, storage tanks, a subsea pipeline, and an offshore loading platform to facilitate the evacuation and loading of crude oil.
The introduction of the Utapate crude oil blend to the market comes less than a year after NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo-operated Oil Mining Lease (OML) 29 Joint Venture (JV).