The Nigerian National Petroleum Corporation Limited (NNPC) has initiated exports of a new crude oil blend named Utapate to the international market.
Utapate, extracted from Oil Mining Lease 13 off the coast of Akwa Ibom State, debuted with its first shipment to Spain in July.
According to NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, Utapate currently yields 28,000 barrels per day, with plans to potentially escalate production to 50,000 barrels per day.
Notably, this new blend boasts a low sulphur content of 0.0655%, making it comparable to highly sought-after varieties like Amenam crude.
Spanish oil giant Repsol secured the tender for Utapate’s inaugural cargo, consisting of 950,000 barrels. Gulf Transport and Trading, another major player in crude oil trading, has also secured tenders for subsequent shipments scheduled for August and September 2024.
Soneye emphasized that Utapate, similar to the previously launched Nembe crude grade, meets stringent European buyer specifications due to its low carbon footprint achieved through flare gas elimination.
“This achievement underscores NNPC’s commitment to enhancing Nigeria’s crude oil production and reserves through new asset development,” stated Soneye.
In a Bloomberg report, Nigeria’s efforts to diversify its crude oil grades were highlighted, with Utapate’s production expected to ramp up to 50,000 barrels per day by the year-end. Concurrently, the Joint Taskforce Operation Delta Safe reported a daily crude oil output of 1.7 million barrels, reflecting stable operations along major pipelines in the Niger Delta region.
NNPC has expressed determination to scale production further to meet domestic demands, including supplying 450,000 barrels per day to local refineries as part of directives from President Bola Tinubu.