The Nigerian National Petroleum Corporation Limited says it has commenced the sales of a new crude oil blend, Utapate, to the international market.
The Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, who made the announcement in a statement on Monday in Abuja, said the product was extracted from its Oil Mining Lease 13, a facility fully operated by NNPC Exploration and Production Limited.
According to him, the Utapate crude oil blend commenced operations in July, with its first cargo exported to Spain.
Soneye revealed that OML 13 is located offshore Akwa Ibom State with current crude oil production of 28,000 barrels per day.
“Utapate’s current crude oil production is at 28,000 barrels per day, with the potential to increase it to 50,000 barrels per day. Also, the sulphur content of the new crude is 0.0655 per cent,” he said.
He said, “Spanish oil giant Repsol won the tender for the initial cargo of 950,000 barrels of the new crude blend which is comparable to the much sought-after Amenam crude. Gulf Transport and Trading, another leading crude oil dealer, has also secured the cargoes’ tenders for August and September 2024.”
The NNPC spokesman recalled that 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 29 Joint Venture.”
He pointed out that the Utapate crude oil blend which is similar to the Nembe crude oil grade, “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.”
Soneye noted that “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.”
Last week, a Bloomberg report confirmed that Nigeria has added another low-sulphur crude grade called Utapate as the country struggles to ramp up daily oil production.
The report stated that the new terminal produced almost 19,000 barrels per day in June, with a production to reach 50,000 by the end of 2024.
On Sunday, the Joint Taskforce Operation Delta Safe in the Niger Delta said daily crude oil output had reached 1.7 million barrels per day.
The Coordinator of OPDS Joint Media Campaign Centre, Kayode Owolabi, in a statement, said, “Daily crude oil output has reached about 1.7 million barrels per day indicating that International Oil Companies are operating at maximum production capacity with little interruption or vandalism along the three major pipelines.”
Similarly, the NNPCL has also said it would do everything possible to achieve 2mbpd.
Experts said this is the only way the NNPC could conveniently sell 450,000mbpd to the Dangote refinery and other local refineries as directed by President Bola Tinubu.