NNPC Unveils Utapate Crude Grade, Targets 80,000 bpd by 2025
In a strategic move to bolster Nigeria’s oil production and revenue, the Nigerian National Petroleum Company Limited (NNPC) has officially unveiled its latest crude oil grade, the Utapate blend, to the international market. The announcement was made during the Argus European Crude Conference in London, where industry stakeholders celebrated the development as a significant milestone for Nigeria’s energy sector.
Global Market Debut
The Utapate crude grade, produced from the Utapate field in Oil Mining Lease (OML) 13, was introduced to the global market following the successful export of its first cargo—950,000 barrels—destined for Spain in July 2024. Since production began in May 2024, output has rapidly climbed to 40,000 barrels per day (bpd), with five cargoes already delivered to international buyers in Spain and the U.S. East Coast.
Addressing the conference, NNPC E&P Limited (NEPL) Managing Director Nicholas Foucart emphasized the blend’s positive reception due to its premium qualities, including low sulphur content and high efficiency for refiners.
“Utapate crude has positioned Nigeria as a competitive player in the global energy market. With two more cargoes secured for November and December, this is a significant boost for the country’s crude oil exports,” Foucart noted.
Production and Growth Plans
NNPC, in partnership with Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd, aims to scale production from 40,000 bpd to:
- 50,000 bpd by January 2025
- 60,000-65,000 bpd by June 2025
- 80,000 bpd by the end of 2025
OML 13, located in Akwa Ibom State, holds an estimated 330 million barrels of crude oil reserves, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas. The field’s development plan, executed between 2013 and 2019, involved infrastructure investments, including production facilities, a subsea pipeline, and an offshore loading platform.
Environmental Responsibility and Market Strategy
Foucart highlighted that the Utapate terminal is fully compliant with stringent environmental regulations, including initiatives to reduce carbon emissions through flare gas elimination. The operation is also designed to provide sustainable benefits for local communities in Akwa Ibom State.
Related Posts
NNPC Trading Limited Managing Director Lawal Sade announced plans for term contracts to ensure a stable supply of Utapate crude, targeting refiners in Europe and the U.S. East Coast. The blend’s pricing structure is modeled after Amenam crude, known for its low sulphur content of 0.0655%, making it highly desirable among refiners.
A Growing Crude Portfolio
The launch of Utapate crude follows the 2023 introduction of the Nembe crude grade from OML 29, reaffirming NNPC’s commitment to increasing Nigeria’s crude oil portfolio.
“This achievement highlights our determination to grow production and reserves through the development of new assets,” Foucart said.
Positioning Nigeria in the Global Energy Market
With its expanding crude oil grades and adherence to sustainability principles, NNPC is cementing Nigeria’s position as a key player in the global energy market. The Utapate blend’s successful debut underscores the nation’s ongoing efforts to enhance its economic standing and meet rising global energy demands.
