The Nigerian National Petroleum Company (NNPC) Limited has introduced its latest crude oil grade, Utapate, to the global market, marking a major development for Nigeria’s oil production and revenue. This launch aims to enhance Nigeria’s crude output and support the economy.
About the Utapate Crude Oil Grade
NNPC collaborated with Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd to develop the Utapate blend. At the Argus European Crude Conference in London, NNPC’s managing director of Exploration & Production, Nicholas Foucart, described Utapate’s entry into the market as a significant step for Nigeria’s crude exports.
Foucart noted that since production began in May 2024, Utapate’s output has reached 40,000 barrels per day (bpd). So far, five shipments have been delivered to markets in Spain and the U.S. East Coast, with more planned for November and December 2024. The NNPC aims to increase production to 80,000 bpd by the end of 2025.
Utapate’s Appeal in the Global Market
The Utapate crude is a light, sweet blend similar to the popular Amenam grade, known for its low sulphur content and high-value product yield, making it attractive to refiners worldwide. Lawal Sade, managing director of NNPC Trading Ltd, explained that Utapate’s pricing is structured to match the Amenam grade, ensuring competitive value for global buyers.
To maintain a steady supply, NNPC plans to establish term contracts for Utapate cargoes, primarily targeting European and U.S. East Coast refineries.
Boosting Production for 2025
The Oil Mining Lease (OML) 13, operated by NNPC E&P Limited and SEEPCO, has a substantial reserve of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas. Foucart announced ambitious plans to increase Utapate’s production capacity to 50,000 bpd by January 2025 and 60,000-65,000 bpd by mid-2025, ultimately aiming for 80,000 bpd by year’s end.
NNPC’s new Utapate crude grade strengthens Nigeria’s position in the global oil market, offering a quality product that meets international refining demands while boosting the nation’s economy.