NNPCL's Utapate Crude Blend to Boosts Daily Output by 28,000 Barrels

The Nigerian National Petroleum Company Limited (NNPCL) has announced the introduction of the Utapate crude oil blend, a new crude oil grade into the international market.

This new blend is produced from Oil Mining Lease (OML) 13, fully operated by NNPC Exploration and Production Limited (NEPL), the upstream subsidiary of NNPCL. The Utapate crude oil blend commenced operations in July 2024, with its first cargo headed for Spain.

Located offshore Akwa Ibom State in Nigeria, the current production of the Utapate crude oil blend stands at 28,000 barrels per day, with potential to increase to 50,000 barrels per day.

The new crude has a low sulfur content of 0.0655%, making it comparable to the much sought-after Amenam crude. Spanish oil giant Repsol won the tender for the initial cargo of 950,000 barrels, while Gulf Transport and Trading have secured tenders for August and September 2024.

The Utapate crude oil blend is noted for its low carbon footprint due to flare gas elimination, fitting perfectly into the required specifications of major buyers in Europe.

This achievement signifies NNPCL's commitment to increasing Nigeria’s crude oil production and growing reserves through the development of new assets.

During the Argus European Crude Conference in London last year, NNPCL also announced the launch of the Nembe crude oil, produced by the NNPC/Aiteo operated OML 29 Joint Venture. Similar to the Nembe grade, the Utapate blend's low sulfur content and environmental benefits make it highly attractive in the international market.

This development comes at a time when Nigeria is striving to boost its oil production to two million barrels per day to enhance revenue. As of July 23, 2024, Nigeria’s average daily production stood at 1.61 million barrels per day, according to Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The addition of the Utapate crude oil blend is expected to hugely contribute to this goal.

NNPCL's Utapate Crude Blend to Boosts Daily Output by 28,000 Barrels