The NNPC Ltd has announced the introduction of a new crude oil blend, Utapate, into the international market. With a current production capacity of 28,000 barrels per day, this new grade is set to significantly boost Nigeria’s oil output.
Olufemi Soneye, the NNPC spokesman, stated that the Utapate crude oil grade, known for its light and low-sulfur properties, is sourced from Oil Mining Lease (OML) 13. This field is fully operated by NEPL, NNPC Ltd’s upstream subsidiary, and commenced operations in July 2024, with its first cargo destined for Spain.
Located offshore Akwa Ibom State, Nigeria, the Utapate field’s production is expected to increase to 50,000 barrels per day. The new crude oil grade features a sulfur content of just 0.0655%.
Spanish oil giant Repsol won the tender for the initial cargo of 950,000 barrels of Utapate, which is comparable to the highly sought-after Amenam crude. Gulf Transport and Trading, another major crude oil dealer, have secured the tenders for the cargoes scheduled for August and September 2024.
At the Argus European Crude Conference in London last year, NNPC Ltd had previously launched the Nembe crude oil, produced by the NNPC/Aiteo-operated Oil Mining Lease (OML) 29 Joint Venture (JV). Like Nembe, the Utapate crude oil blend boasts low sulfur content and a low carbon footprint due to flare gas elimination, aligning well with the specifications required by major buyers in Europe.
“This remarkable achievement signals the commitment of the NNPC Ltd to increase Nigeria’s crude oil production and grow reserves through the development of new assets,” the company stated.