Utapate Crude Oil: NNPCL Launches New Crude Oil Grade for Export to Spain
- NNPC Ltd. introduces Utapate crude oil blend into the international market.
- Utapate crude oil is produced from Oil Mining Lease (OML) 13, operated by NEPL.
- The first cargo, containing 950,000 barrels, heads to Spain.
- Current production is 28,000 barrels per day (bpd) with potential to increase to 50,000 bpd.
- The new crude oil has a sulphur content of 0.0655%.
- Repsol and Gulf Transport and Trading are the initial buyers.
- Utapate blend has a low sulphur content and low carbon footprint.
- NNPC Ltd.’s commitment to increasing Nigeria’s crude oil production and reserves.
Summary
- Introduction of Utapate crude oil blend
- Production details
- Started in July 2024
- First cargo of 950,000 barrels
- Current production at 28,000 bpd
- Potential increase to 50,000 bpd
- Sulphur content at 0.0655%
- Initial buyers
- Repsol: 950,000 barrels for the first cargo
- Gulf Transport and Trading: Tenders for August and September 2024
- Comparison with other grades
- Comparable to Amenam crude
- Low sulphur and low carbon footprint
- Strategic importance
- Enhances Nigeria’s crude oil production
- Grows reserves through new asset development
- Fits European market requirements
- Recent milestones
- Nembe crude oil grade announcement at Argus European Crude Conference in 2023
- NNPC Ltd.’s vision
- Commitment to increasing production and reserves
- Environmental sustainability through flare gas elimination
Main Article
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has made a significant stride in the global crude oil market by introducing the Utapate crude oil blend. This new grade of oil, produced from Oil Mining Lease (OML) 13, has been fully operated by NNPC Ltd.’s upstream subsidiary, NEPL. The inaugural cargo, carrying 950,000 barrels of this crude, set sail for Spain in July 2024, marking a new chapter in Nigeria’s oil export capabilities.
The Utapate crude oil blend is sourced from offshore Akwa Ibom State in Nigeria. According to Olufemi Soneye, the Chief Corporate Communications Officer of NNPC Ltd., the current production level stands at 28,000 barrels per day (bpd). However, the production capacity has the potential to ramp up to 50,000 bpd, showcasing a significant growth opportunity for this new oil grade.
The Utapate blend features a sulphur content of 0.0655%, making it a desirable choice for international buyers who prioritize low-sulphur crude. This low sulphur content is particularly attractive to European refineries, which are increasingly seeking cleaner and more environmentally friendly crude oil options.
The initial buyer of the Utapate crude oil blend is Repsol, a major Spanish oil company that secured the tender for the first cargo of 950,000 barrels. This marks a significant achievement for NNPC Ltd. as it establishes a foothold in the European market with a reputable partner.
Gulf Transport and Trading, another leading crude oil dealer, has also secured tenders for the cargoes scheduled for August and September 2024. This early interest from prominent industry players underscores the market potential and the strategic importance of the Utapate crude oil blend.
Comparison with Other Crude Oil Grades
The Utapate crude oil blend is comparable to the much-sought-after Amenam crude, which is known for its desirable properties. Both grades feature low sulphur content, which is a key factor for buyers looking to meet stringent environmental regulations and reduce their carbon footprints.
In addition to its low sulphur content, the Utapate blend benefits from a low carbon footprint due to flare gas elimination practices. This aligns with global trends towards more sustainable and environmentally responsible oil production methods.
Strategic Importance and Commitment
The launch of the Utapate crude oil blend is a testament to NNPC Ltd.’s commitment to enhancing Nigeria’s crude oil production and growing its reserves. By developing new assets and introducing new oil grades to the international market, NNPC Ltd. is positioning itself as a key player in the global oil industry.
This achievement follows the announcement of the Nembe crude oil grade at the Argus European Crude Conference in London in 2023. Like the Utapate blend, the Nembe crude oil grade is produced by the NNPC/Aiteo-operated OML 29 Joint Venture (JV). Both grades exemplify NNPC Ltd.’s strategic vision of increasing production while adhering to environmental sustainability practices.
Production and Export Potential
NNPC Ltd.’s focus on increasing production and export potential is evident in the development of the Utapate crude oil blend. With current production at 28,000 bpd and the potential to increase to 50,000 bpd, the Utapate blend represents a significant addition to Nigeria’s oil export portfolio.
The low sulphur content of 0.0655% makes the Utapate blend highly attractive to European refineries, which are increasingly seeking cleaner and more environmentally friendly crude oil options. This aligns with global trends towards reducing sulphur emissions and meeting stringent environmental regulations.
Environmental Sustainability
A key feature of the Utapate crude oil blend is its low carbon footprint, achieved through the elimination of flare gas. This environmentally sustainable practice not only reduces greenhouse gas emissions but also enhances the overall desirability of the crude oil blend in the international market.
Comparison of Utapate and Amenam Crude Oil Grades
Property | Utapate Crude Oil | Amenam Crude Oil |
---|---|---|
Sulphur Content | 0.0655% | 0.06% |
Production Capacity | 28,000 – 50,000 bpd | 40,000 – 50,000 bpd |
Carbon Footprint | Low | Low |
Initial Buyer | Repsol | Various |
Conclusion
The introduction of the Utapate crude oil blend is a major achievement for NNPC Ltd. and Nigeria’s oil industry. This new type of crude oil has low sulphur content. Sulphur is a chemical element that, in high amounts, can cause pollution. The oil also has a low carbon footprint, which means it produces less carbon dioxide when used. Carbon dioxide is a gas that contributes to global warming.
By offering this new grade of oil, NNPC Ltd. wants to become a leader in the global market. Major buyers like Repsol and Gulf Transport and Trading are already showing interest. This interest shows that the new oil has a lot of potential and is very important strategically.