The Nigerian National Petroleum Corporation Limited (NNPCL) has marked another significant milestone in its quest to bolster Nigeria’s crude oil production, revenue generation, and economic growth with the official unveiling of its newest crude oil grade, the Utapate crude oil blend.
This launch took center stage at the ongoing Argus European Crude Conference in London, England, where a packed audience of European crude oil marketers witnessed the introduction of this groundbreaking product.
The unveiling comes after the successful lifting of the first cargo of 950,000 barrels of Utapate crude oil in July 2024. This initial shipment, which headed to Spain, signaled the entry of a highly anticipated oil blend into the international energy market.
During the conference, Mr. Nicholas Foucart, Managing Director of NNPC E&P Limited (NEPL), described the introduction of the Utapate crude oil blend as a landmark achievement for Nigeria’s energy sector. According to him, the Utapate terminal stands out for its sustainability, affordability, and compliance with rigorous environmental regulations aimed at minimizing carbon emissions and ecological impact.
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Echoing this sentiment, Mr. Lawal Sade, Managing Director of NNPC Trading Ltd. (NTL), emphasized the competitive pricing structure of Utapate crude oil. He likened its pricing to that of the Amenam crude oil grade, highlighting its status as a light sweet crude—highly sought after by refiners globally due to its low sulphur content, high-value product yield, and favorable API gravity.
“By introducing Utapate crude oil blend to the global market,” Mr. Sade remarked, “NNPCL seeks to optimize value for both producers and international counterparties.” To ensure a reliable and predictable supply, NNPC Trading Ltd. intends to run term contracts for Utapate cargoes, primarily targeting European and U.S. East Coast refineries.
The Utapate crude oil blend, produced from the Utapate field in Oil Mining Lease (OML) 13 in Akwa Ibom State, aligns with global demand for environmentally friendly and efficient energy solutions. Its low sulphur content of 0.0655% and reduced carbon footprint—achieved through flare gas elimination—make it an ideal fit for eco-conscious refiners, particularly in Europe.
The Utapate field’s development reflects years of meticulous planning and execution. Between 2013 and 2019, the field underwent a comprehensive development plan that converted swamp and marine operations into land-based facilities.
This included drilling 40 wells, developing extensive infrastructure such as production facilities, storage tanks, subsea pipelines, and offshore loading platforms to streamline crude oil evacuation and export.
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In partnership with Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd., NNPC E&P Ltd. has worked tirelessly to ensure the Utapate terminal meets the highest operational standards. The partnership is equally committed to maintaining safe and environmentally responsible practices while fostering positive impacts in local communities.
The introduction of Utapate crude oil blend comes less than a year after the launch of Nembe crude oil, another grade developed under the NNPC/Aiteo-operated OML 29 Joint Venture. The rapid diversification of Nigeria’s crude oil portfolio demonstrates NNPCL’s determination to solidify the nation’s position as a competitive player in the global energy market.
By offering a sustainable and high-quality product, NNPCL is strategically positioning Utapate crude oil to cater to refiners’ preferences for lighter crudes with efficient yields. The long-term plan to establish term contracts ensures consistent supply, fostering trust and reliability among global buyers.
The unveiling of Utapate crude oil blend represents more than a technical achievement; it is a crucial step towards enhancing Nigeria’s economic stability. As the country seeks to maximize its oil revenue and attract foreign investments, initiatives like this showcase its ability to meet international energy demands while adhering to environmental standards.
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With the Utapate crude oil blend now available on the global market, NNPCL has set a new benchmark for innovation, sustainability, and excellence in Nigeria’s oil and gas sector. This development is expected to contribute significantly to the nation’s GDP, create jobs, and pave the way for future advancements in energy production.
As Nigeria continues to rise as an energy powerhouse, the launch of the Utapate crude oil blend underscores the importance of collaboration, innovation, and sustainability in driving growth in the energy sector. For stakeholders, investors, and energy enthusiasts, this is only the beginning of a promising journey.