The Nigerian National Petroleum Corporation Limited (NNPCL) has officially unveiled the Utapate crude oil blend, marking a significant milestone for Nigeria’s oil production and export. This introduction occurred at the Argus European Crude Conference in London, before an audience of European crude oil marketers.
The development is set to bolster Nigeria’s crude oil revenue generation and strengthen its position in the global energy market.
Significant Milestones
- Production Growth: Since commencing production in May 2024, the Utapate field has ramped up output to 40,000 barrels per day (bpd). The NNPCL aims to increase this to 50,000bpd by January 2025 and 80,000bpd by the end of 2025.
- Exports: Over five cargoes, primarily to Spain and the US East Coast, already delivered, with additional shipments planned for November and December 2024.
Utapate Crude’s Unique Qualities
According to Nicholas Foucart, Managing Director of NNPC E&P Limited, the Utapate crude oil blend has received positive international market feedback due to its:
- Low sulphur content (0.0655%).
- Light sweet nature, which yields high-value products.
- Low carbon footprint, thanks to advanced flare gas elimination measures.
The crude’s pricing is comparable to the highly sought-after Amenam crude, making it a lucrative option for European and US East Coast refineries.
Environmental Compliance
The Utapate terminal adheres to rigorous environmental standards, ensuring sustainability. It aligns with global goals to reduce carbon emissions and supports local communities through environmentally responsible operations.
Infrastructure and Field Development
The Utapate field, located in OML 13 in Akwa Ibom State, underwent significant upgrades, including:
- A multi-rig drilling campaign for 40 wells.
- Infrastructure development, such as production facilities, a storage tank, and a subsea pipeline.
- Conversion from swamp/marine to land-based operations, boosting efficiency.
This follows the success of the Nembe crude oil blend, introduced by NNPCL in 2023.
Strategic Impact
Lawal Sade, Managing Director of NNPC Trading Ltd., emphasized that the Utapate crude’s pricing and quality meet the stringent specifications of major global refineries. The NNPCL plans to establish term contracts to ensure a sustainable and predictable supply chain.
Also, The launch of the Utapate crude oil blend underscores Nigeria’s potential to increase its crude oil market share while prioritizing environmental responsibility. Furthermore, With ambitious production targets and a growing reputation in international markets, Nigeria is poised to strengthen its energy sector’s contribution to economic growth.
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