By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited has shipped the first cargo of the Utapate crude oil blend, a new crude oil grade, into the international crude oil market, with Spain selected as the first destination.
Recall that the Utapate crude was recently launched by the state-owned oil firm as part of efforts to boost Nigeria’s dwindling crude production, which has been affected by the triple whammy of oil theft, vandalism, and underinvestment.
According to a statement by Mr Olufemi Soneye, the Chief Corporate Communications Officer of NNPC, this came from Oil Mining Lease (OML) 13, fully operated by NEPL, NNPC Limited’s upstream subsidiary.
The Utapate crude oil blend commenced operations in July 2024, as its first cargo headed for Spain, he noted.
“Located offshore Akwa Ibom State in Nigeria, Utapate’s current crude oil production is at 28,000 barrels per day, with potential to increase it to 50,000 barrels per day. Also, the sulphur content of the new crude is 0.0655 per cent,” the statement said.
“Spanish oil giant Repsol won the tender for the initial cargo of the new crude blend which is comparable to the much sought-after Amenam crude. Gulf Transport and Trading, another leading crude oil dealer, have also secured the cargo tenders for August and September 2024.
“During the Argus European Crude Conference in London last year, NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).
“Similar to the Nembe crude oil grade, the Utapate crude oil blend has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.
“This remarkable achievement signals the commitment of the NNPC Ltd to increase Nigeria’s crude oil production and grow reserves through the development of new assets.”