NNPCL begins Utapate crude sale to world refiners

The Nigerian Nationwide Petroleum Company Restricted says it has commenced gross sales of its newest crude oil grade, the Utapate crude oil mix, to worldwide refiners, six months after it started exploration.

It mentioned the event is a significant increase for Nigeria’s crude oil manufacturing, income technology and financial progress efforts.

An announcement signed by the Chief Company Communications Officer, NNPCL, Olufemi Soneye, on Wednesday in Abuja, acknowledged that the brand new product was unveiled earlier than a packed viewers of European crude oil entrepreneurs on the ongoing Argus European Crude Convention going down in London, England.

It could be recalled that in July 2024, the NNPCL and its associate, the Sterling Oil Exploration and Vitality Manufacturing Firm Restricted, launched the Utapate crude oil mix, following the lifting of the primary cargo of 950,000 barrels, which headed for Spain.

Produced from the Utapate area within the Oil Mining Lease 13 in Akwa Ibom State, the Utapate crude oil mix is much like the Nembe crude oil grade. It has a low sulphur content material of 0.0655 per cent and a low carbon footprint as a consequence of flare fuel elimination, becoming completely into the required specs of main European consumers.

The Managing Director, NNPC E&P Restricted, Nicholas Foucart, in his handle, described the introduction of the Utapate crude oil mix into the market as a big milestone for Nigeria’s crude oil export to the worldwide vitality market.

Foucart mentioned, “Since we began producing the Utapate in Might 2024, we now have quickly ramped up manufacturing to 40,000 barrels per day with minimal downtime. Thus far, we now have exported 5 cargoes, largely to Spain and the East Coast of america; whereas two extra further cargoes have been secured for November and December 2024, representing a big increase to Nigeria’s crude oil export to the worldwide market.”

He added that since its introduction into the worldwide market, the Utapate crude oil mix has loved a optimistic response from the worldwide crude oil market as a consequence of its extremely engaging qualities.

Foucart mentioned the OML 13, totally operated by NEPL and Pure Oilfield Providers Restricted, a subsidiary of SEEPCO Restricted, has big reserves of 330 million barrels of crude oil, 45 million barrels of condensate and three.5 tcf of fuel.

“We have now a number of ongoing tasks to extend our manufacturing from the present 40,000 bopd to 50,000 bopd by January 2025, and 60,000 bopd to 65,000 bopd by June 2025. Primarily, we’re concentrating on alternatives to extend manufacturing to 80,000 bonds by the top of 2025,” Foucart famous.

He mentioned the Utapate crude oil terminal is sustainable, reasonably priced and totally compliant with the rigorous environmental rules and sustainability rules, particularly these aimed toward lowering carbon emissions and different ecological results.

Additionally talking, the Managing Director of NNPC Buying and selling Restricted, Lawal Sade, mentioned the pricing construction of the Utapate crude oil mix is much like that of Amenam crude as it’s a gentle, candy crude which is extremely wanted by refiners the world over as a consequence of its low sulphur content material, environment friendly yield of high-value merchandise, API gravity and different similarities.

He mentioned in bringing the brand new crude oil mix to the worldwide market, the NNPCL needed to optimise worth for each its producers and counterparties throughout the globe.

The Utapate area improvement plan, executed between 2013 and 2019, included changing wells and services from swamp or marine to land-based operations.

The entry of the Utapate crude oil mix into the market is coming barely a yr after the NNPCL introduced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated OML 29 Joint Enterprise.