NNPC Exports New Crude Blend to Spain Amid Fuel Scarcity
The Nigerian National Petroleum Company Limited (NNPC) has made a significant move in the international oil market by launching its new crude oil blend, known as Utapate. This development comes at a crucial time when Nigeria is grappling with fuel scarcity, making the introduction of this new crude blend particularly relevant. The first shipment of Utapate, which was exported to Spain, marks a pivotal moment for the NNPC as it seeks to enhance its crude oil production capabilities and meet international demand.
According to NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, the Utapate crude oil blend is sourced from Oil Mining Lease (OML) 13, fully operated by NNPC Exploration and Production Limited. The blend commenced operations in July 2024, and its first cargo of 950,000 barrels was successfully delivered to Spain. This initial shipment was secured by Spanish oil giant Repsol, demonstrating the blend’s appeal in the competitive global market.
Currently, the production capacity of Utapate stands at 28,000 barrels per day, with projections to increase this figure to 50,000 barrels per day in the near future. Notably, the sulphur content of Utapate is a mere 0.0655 percent, which aligns with the stringent specifications demanded by major buyers in Europe. This low sulphur content not only enhances the quality of the crude but also contributes to a lower carbon footprint, a factor increasingly prioritized by international buyers.
The introduction of Utapate is part of NNPC’s broader strategy to boost Nigeria’s crude oil production and grow its reserves through the development of new assets. This strategy is essential as the country aims to ramp up its daily oil production to two million barrels per day, a target that is crucial for improving national revenue amidst ongoing economic challenges.
In recent weeks, reports have indicated that Nigeria’s average daily oil production has been fluctuating, with figures hovering around 1.61 million barrels per day as of late July. This is a significant increase from the previous month, where production was reported at 1.25 million barrels per day. The Joint Taskforce Operation Delta Safe has also confirmed that daily crude oil output has reached approximately 1.7 million barrels per day, indicating that international oil companies are operating at near maximum capacity with minimal interruptions.
The success of Utapate is not just a win for NNPC but also a strategic response to the increasing global demand for low-sulphur crude oil. The blend is comparable to the highly sought-after Amenam crude, which has established a strong presence in the international market. Gulf Transport and Trading, another key player in the oil sector, has also secured tenders for additional cargoes of Utapate for August and September 2024, further solidifying its market position.
As Nigeria continues to navigate the complexities of its oil production landscape, the launch of Utapate serves as a beacon of hope. The NNPC’s commitment to enhancing production capabilities and exploring new avenues for revenue generation is crucial in a time when fuel scarcity has become a pressing issue for many Nigerians. The government’s focus on increasing local refining capacity, as directed by President Bola Tinubu, underscores the urgency of these developments.
In conclusion, the export of the Utapate crude oil blend to Spain is a significant milestone for the NNPC and the Nigerian oil industry. It not only highlights the potential of Nigerian crude oil in the international market but also reflects the ongoing efforts to address domestic fuel shortages. As the NNPC continues to innovate and expand its production capabilities, the future of Nigeria’s oil sector appears poised for growth, provided that the necessary measures are taken to ensure stability and sustainability in production.
