It said the development is a major boost for Nigeria’s crude oil production, revenue generation and economic growth efforts.

A statement signed by the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, on Wednesday in Abuja, stated that the new product was unveiled before a packed audience of European crude oil marketers at the ongoing Argus European Crude Conference taking place in London, England.

It would be recalled that in July 2024, the NNPCL and its partner, the Sterling Oil Exploration and Energy Production Company Limited, introduced the Utapate crude oil blend, following the lifting of the first cargo of 950,000 barrels, which headed for Spain.

Produced from the Utapate field in the Oil Mining Lease 13 in Akwa Ibom State, the Utapate crude oil blend is similar to the Nembe crude oil grade. It has a low sulphur content of 0.0655 per cent and a low carbon footprint due to flare gas elimination, fitting perfectly into the required specifications of major European buyers.

The Managing Director, NNPC E&P Limited, Nicholas Foucart, in his address, described the introduction of the Utapate crude oil blend into the market as a significant milestone for Nigeria’s crude oil export to the global energy market.

Foucart said, “Since we started producing the Utapate in May 2024, we have rapidly ramped up production to 40,000 barrels per day with minimum downtime. So far, we have exported five cargoes, largely to Spain and the East Coast of the United States; while two more additional cargoes have been secured for November and December 2024, representing a significant boost to Nigeria’s crude oil export to the global market.”

He added that since its introduction into the global market, the Utapate crude oil blend has enjoyed a positive response from the international crude oil market due to its highly attractive qualities.

Foucart said the OML 13, fully operated by NEPL and Natural Oilfield Services Limited, a subsidiary of SEEPCO Limited, has huge reserves of 330 million barrels of crude oil, 45 million barrels of condensate and 3.5 tcf of gas.

“We have several ongoing projects to increase our production from the current 40,000 bopd to 50,000 bopd by January 2025, and 60,000 bopd to 65,000 bopd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000 bonds by the end of 2025,” Foucart noted.

He said the Utapate crude oil terminal is sustainable, affordable and fully compliant with the rigorous environmental regulations and sustainability principles, especially those aimed at reducing carbon emissions and other ecological effects.

Also speaking, the Managing Director of NNPC Trading Limited, Lawal Sade, said the pricing structure of the Utapate crude oil blend is similar to that of Amenam crude as it is a light, sweet crude which is highly sought after by refiners across the world due to its low sulphur content, efficient yield of high-value products, API gravity and other similarities.

He said in bringing the new crude oil blend to the global market, the NNPCL wanted to optimise value for both its producers and counterparties across the globe.

The Utapate field development plan, executed between 2013 and 2019, included converting wells and facilities from swamp or marine to land-based operations.

The entry of the Utapate crude oil blend into the market is coming barely a year after the NNPCL announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated OML 29 Joint Venture.

“Testing will conclude shortly, ensuring the refinery’s efficient operation. That phase will be completed this month,” Reuters quoted NNPC spokesperson, Femi Soneye, as saying.

Soneye added that the test run was a major step towards resuming operations five years after the plant was shut.

The state-owned oil company announced in December the mechanical completion of rehabilitation work on the Area-5 Plant of the facility.

It said the first phase of the plant had been completed, as the facility would start refining 60,000 barrels of crude oil daily after the Christmas break.

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, had stated that the first phase of the PHRC was completed on December 20, 2023, adding that refined products’ production would commence after the Yuletide.

It is expected that once functional, alongside the Dangote Refinery which is expected to start oil refining this year, the facility will ease the pressure on the country’s foreign exchange.

Though the cost of refined products would reduce once these facilities start pumping, experts and downstream operators stated it would not lead to a massive price crash.