by Niyi Jacobs
Nigeria’s crude oil production has received a significant boost with the global market introduction of the Utapate crude oil blend, the latest offering from NNPC Ltd and its partner, Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd.
At the Argus European Crude Conference in London, the Managing Director of NNPC Exploration and Production Limited (NEPL), Mr. Nicholas Foucart, announced that production from the Utapate Field has reached 40,000 barrels per day (bpd) since operations began in May 2024. “So far, we’ve exported five cargoes to Spain and the U.S., with two more scheduled for November and December 2024. We aim to increase production to 80,000 bpd by the end of 2025,” Foucart revealed.
The Utapate crude oil blend, produced from the Utapate Field in OML 13, Akwa Ibom State, has been praised for its low sulfur content of 0.0655%, making it highly sought after by refiners in Europe and the U.S. East Coast. Its similarities to the Amenam crude oil grade, including its light sweet properties and high-value yield, have further solidified its appeal in the global energy market.
Foucart highlighted that OML 13, jointly operated with Natural Oilfield Services Ltd (NOSL), contains substantial reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas. Ongoing development projects aim to increase output to 50,000 bpd by January 2025 and 65,000 bpd by mid-year.
Speaking on sustainability, Foucart emphasized the field’s compliance with global environmental standards, including efforts to eliminate gas flaring and reduce carbon emissions. The Utapate crude oil terminal is designed to be both environmentally responsible and economically efficient.
Mr. Lawal Sade, Managing Director of NNPC Trading Ltd, noted the strategic importance of the Utapate blend, which has already garnered positive feedback from international buyers. He announced plans to establish term contracts for consistent supply to European and U.S. refineries, optimizing value for both producers and buyers.
The Utapate crude oil blend’s debut comes shortly after NNPC Ltd launched the Nembe crude grade, reinforcing its commitment to increasing Nigeria’s crude oil output and strengthening its position in the global oil market. With sustainable practices and innovative production strategies, NNPC Ltd is positioning Nigeria as a key player in the energy sector’s future.
