In a significant boost for Nigeria's crude oil production, revenue generation, and economic growth, the Nigerian National Petroleum Company (NNPC) Limited has officially introduced its new Utapate crude oil blend to the international market.
The Utapate blend was first unveiled in July 2024 by NNPC Ltd in partnership with Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd, following the successful lifting of its inaugural cargo of 950,000 barrels, which was shipped to Spain.
At the Argus European Crude Conference in London on Wednesday, NNPC E&P Limited’s Managing Director, Mr. Nicholas Foucart, highlighted the milestone as crucial for expanding Nigeria’s presence in the global oil market.
“Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) 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,” said Foucart, addressing an audience of European oil marketers.
The Utapate crude has received a warm reception in global markets due to its appealing characteristics, and its introduction is expected to significantly contribute to Nigeria’s export growth.
Foucart also noted that the Oil Mining Lease (OML) 13, which is operated by NEPL and Natural Oilfield Services Ltd (NOSL), a SEEPCO Ltd subsidiary, holds substantial reserves, including 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas. Looking ahead, NNPC aims to increase production to 80,000bpd by the end of 2025.
“We have a number of ongoing projects to increase our production from the current 40,000bopd to 50,000bopd by January 2025 and 60,000bopd to 65,000bopd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000bopd by the end of 2025,” Foucart added.
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 Ltd (NTL), Mr. 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, NNPC Ltd wanted to optimise value for both its producers and counterparties across the globe.
He added to ensure predictability and sustainability of supply, the NNPC Trading intends to run a term contract on the Utapate crude oil blend cargoes, principally targeting off-takers from the European and the US East Coast refineries.
Produced from the Utapate field in OML 13 in Akwa Ibom State in Nigeria, the Utapate crude oil blend is similar to the Nembe crude oil grade. It has a low sulphur content of 0.0655% and low carbon footprint due to flare gas elimination, fitting perfectly into the required specification of major buyers in Europe.
The NNPC E&P Ltd and NOSL partnership is also committed to operating in a manner that is safe, environmentally responsible, and beneficial to the local communities.
The Utapate field development plan, executed between 2013-2019 and approved in October, included converting wells and facilities from swamp/marine to land-based operations.
The plan involved a multi-rig drilling campaign for 40 wells and the development of significant infrastructure such as production facilities, storage tank, a subsea pipeline and an offshore loading platform to facilitate crude oil evacuation and loading.
The entry of the Utapate crude oil blend into the market is coming barely a year after the NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).
This remarkable achievement signals the commitment of the NNPC Ltd to increasing Nigeria’s crude oil production and growing its reserves through the development of new assets.
No comments:
Post a Comment