The Nigerian National Petroleum Company Limited (NNPC Ltd) has made a significant addition to the global oil market with the introduction of a new crude oil grade, Utapate.
This new blend is characterized by its low sulphur content and is strategically aimed at the European market, known for its stringent environmental standards and demand for cleaner fuels.
Olufemi Soneye, Chief Corporate Communications Officer at NNPC Ltd, announced that the first shipment of the Utapate crude oil blend, consisting of 950,000 barrels, was dispatched to Spain in July.
This marks the beginning of what NNPC Ltd hopes will be a major expansion in Nigeria’s crude oil offerings.
The Utapate crude, produced from Oil Mining Lease (OML) 13, operated by NNPC Exploration and Production Limited, is currently yielding 28,000 barrels per day (bpd) and has the potential to increase production to 50,000 bpd.
“The introduction of Utapate crude oil blend is a testament to NNPC Ltd’s commitment to expanding Nigeria’s crude oil production and reserves. This new blend features a sulphur content of just 0.0655 percent, making it highly desirable for refineries looking to produce low-sulphur fuels,” Soneye stated.
He emphasized that the low carbon footprint of the Utapate blend, achieved through flare gas elimination, aligns well with the European market’s environmental requirements.
The tender for the initial cargo was won by Spanish oil giant Repsol, reflecting strong international interest in the new product.
This was further underscored by Gulf Transport and Trading, another leading crude oil dealer, which secured tenders for subsequent shipments in August and September 2024.
The launch of Utapate follows NNPC Ltd’s previous introduction of the Nembe crude oil grade, produced under a joint venture with Aiteo at Oil Mining Lease (OML) 29. Like Utapate, Nembe is also characterized by low sulphur content, positioning it favorably in the European market.
This development signals NNPC Ltd’s strategic efforts to diversify and strengthen Nigeria’s presence in the global oil market.
By introducing new, environmentally-friendly crude oil blends, NNPC Ltd aims to meet the evolving demands of international markets, particularly in Europe, where regulations increasingly favor cleaner energy sources.