By Hosea Parah, Abuja

In a significant development for Nigeria’s oil sector, the Nigerian National Petroleum Corporation (NNPC) Ltd has unveiled its newest crude oil blend, Utapate, to the global market. The announcement, made at the prestigious Argus European Crude Conference in London, marks a major milestone in Nigeria’s strategy to boost crude oil exports and solidify its position in the international energy market.

The announcement was made by Olufemi O. Soneye, Chief Corporate Communications Officer of NNPC Ltd, in Abuja on Wednesday.

The Utapate crude oil blend, produced from the Utapate field in Oil Mining Lease (OML) 13, is the result of a joint venture between NNPC and its partner, Sterling Oil Exploration & Energy Production Company Ltd (SEEPCO). The first cargo, comprising 950,000 barrels of Utapate crude, was shipped to Spain in July 2024, with subsequent shipments being sent to Spain and the United States East Coast.

At the conference, NNPC’s Managing Director for Exploration & Production, Mr. Nicholas Foucart, highlighted the impressive progress made since the start of production in May 2024. “We have rapidly scaled up production to 40,000 barrels per day (bpd), with minimal downtime,” Foucart stated. He also outlined the company’s plans to increase production to 50,000 bpd by January 2025, and to reach between 60,000 and 65,000 bpd by mid-2025, with a final target of 80,000 bpd by the end of 2025.

The Utapate field, located in Akwa Ibom State, is estimated to hold significant reserves of 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of natural gas. This vast resource base, coupled with the crude’s highly desirable qualities—such as its low sulfur content of 0.0655%—has made Utapate an attractive option for international refineries, particularly those in Europe and the United States.

Foucart also emphasized the environmental credentials of the Utapate crude oil blend. “The Utapate terminal is fully compliant with global environmental standards, focusing on minimizing carbon emissions and environmental impact,” he explained. The crude’s low sulfur content, alongside the elimination of flare gas, reduces its carbon footprint, making it an eco-friendly option for refineries seeking to produce high-value products.

Mr. Lawal Sade, Managing Director of NNPC Trading Ltd, added that Utapate’s pricing structure is competitive with other high-quality light sweet crudes, such as Amenam, further enhancing its appeal to refiners around the world. He confirmed that NNPC plans to offer long-term contracts for Utapate crude, primarily targeting refiners in Europe and along the U.S. East Coast, to ensure steady and reliable supply.

Looking ahead, NNPC plans to continue expanding its production capacity, with a goal of increasing Utapate field’s output to 80,000 bpd by the close of 2025. This growth is in line with Nigeria’s broader objectives of increasing oil production and generating greater revenue to support national economic development.

The launch of Utapate crude comes just months after the introduction of the Nembe crude oil blend, produced from NNPC’s joint venture with Aiteo at Oil Mining Lease (OML) 29. Together, these new blends demonstrate NNPC’s ongoing commitment to increasing Nigeria’s oil production capacity, enhancing crude oil exports, and expanding the country’s presence in the global energy market.

The success of the Utapate field and its strong reception by international markets highlight Nigeria’s growing influence as a key player in the global oil industry.