NNPC Ships 950,000 Barrels of Utapate Crude Oil to Spain

The Nigerian National Petroleum Company Limited (NNPCL) has made a significant stride in the international oil market by exporting its inaugural cargo of 950,000 barrels of Utapate crude to Spain. This crude, produced from the Utapate field in Oil Mining Lease (OML) 13 in Akwa Ibom State, Nigeria, is similar to the Nembe crude oil grade.

Utapate crude is distinguished by its low sulfur content of just 0.0655% and reduced carbon footprint, achieved through the elimination of gas flaring. These qualities make it highly suitable for European buyers, as reported by NAN. The crude was first introduced in July by NNPC Ltd. in partnership with Sterling Oil Exploration & Energy Production Company (SEEPCO Ltd.).

Nicholas Foucart, Managing Director of NNPC Exploration & Production Limited (NEPL), revealed the shipment of the locally produced crude during the Argus European Crude Conference in London. In a statement from NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, the company highlighted this export as a significant step towards boosting Nigeria’s oil revenue.

The statement noted that production from the Utapate field, which began in May 2024, has quickly ramped up to 40,000 barrels per day (bpd) with minimal interruptions. NNPC Ltd. has already exported five cargoes, mainly to Spain and the U.S. East Coast, with two additional shipments scheduled for November and December 2024.

The Utapate blend has received positive feedback from international buyers. According to the statement, the reserves in OML 13, managed by NEPL and Natural Oilfield Services Ltd. (NOSL), a SEEPCO Ltd. subsidiary, are substantial—comprising 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.

Looking ahead, NNPC plans to increase production from the current 40,000 bpd to 50,000 bpd by January 2025, with further targets of 60,000 to 65,000 bpd by mid-2025. The company is also aiming for 80,000 bpd by the end of 2025.

Lawal Sade, Managing Director of NNPC Trading Ltd. (NTL), compared the Utapate crude oil blend to the Amenam crude, highlighting its appeal due to its low sulfur content, high-value product yield, and similarities to other sought-after crudes. To ensure steady and predictable supply, NNPC intends to establish term contracts for Utapate crude, mainly targeting European and U.S. East Coast refineries.

The development plan for the Utapate field, executed between 2013 and 2019, involved transitioning facilities from swamp/marine to land-based operations, including a drilling campaign for 40 wells and the construction of infrastructure such as production facilities, storage tanks, subsea pipelines, and an offshore loading platform to support crude oil evacuation.

The launch of the Utapate crude oil blend into the market follows closely behind the introduction of Nembe crude oil, which was inaugurated by NNPC Ltd. and Aiteo in the OML 29 Joint Venture just a year ago.