Utapate is the newest addition to Nigeria’s portfolio of crude oil grades, launched by the Nigerian National Petroleum Company (NNPC) Limited in collaboration with Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd. Sourced from Oil Mining Lease (OML) 13 in offshore Akwa Ibom State, the introduction of Utapate aims to boost Nigeria’s oil production and solidify its position in the global energy market.
Key Qualities of Utapate Crude
Utapate is a light, sweet crude oil notable for its low sulphur content (0.0655%), making it an ideal choice for producing high-quality, low-emission fuels. Its composition is similar to the Amenam blend, which is valued for its efficient refining properties and environmentally friendly characteristics. This makes Utapate highly attractive to refineries in Europe and the U.S., where demand for low-sulphur, high-yield crude is strong due to stringent environmental standards.
Production and Export Overview
Production of Utapate commenced in May 2024, quickly ramping up to 40,000 barrels per day (bpd), with targets to reach 50,000 bpd by January 2025 and 80,000 bpd by the end of 2025. Export activities began with initial shipments to Spain and the U.S. East Coast, where demand has been high. Companies like Repsol and Gulf Transport and Trading have already secured tenders, underscoring Utapate’s immediate market appeal.
Strategic Significance and Market Impact
NNPC showcased Utapate at the Argus European Crude Conference in London, positioning it as a strategic addition to Nigeria’s export offerings. Utapate is expected to enhance Nigeria’s export stability and revenue amid an increasingly competitive market. The NNPC has set pricing for Utapate in line with the Amenam grade to meet global market expectations. Additionally, the company aims to establish long-term contracts for Utapate, ensuring consistent demand and sustainable supply.
Long-Term Goals and Environmental Benefits
The production of Utapate is part of NNPC’s broader efforts to expand Nigeria’s crude oil production and reserves. OML 13, where Utapate is sourced, contains significant resources, including 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of natural gas. Leveraging advanced technology to reduce gas flaring and lower carbon emissions, Utapate aligns with global trends toward sustainable and cleaner oil production.
Through Utapate, NNPC is strategically positioning Nigeria to meet international standards, support sustainable energy goals, and drive economic growth by offering a product that balances quality, environmental responsibility, and market demand.
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