Nigeria has introduced a new crude oil grade, Utapate, as the country aims to restore its oil production to pre-pandemic levels.
The first export shipment of Utapate was loaded last month by a subsidiary of the Nigerian National Petroleum Company Limited (NNPC) and its partner Natural Oilfield Services, according to sources who wished to remain anonymous.
Utapate is a light, low-sulfur crude oil extracted from the Niger Delta region, adding to Nigeria’s diverse portfolio of crude grades.
In June, the Utapate terminal produced approximately 19,000 barrels per day, with expectations of reaching 50,000 barrels per day by year-end, according to sources. The NNPC has yet to comment on this development.
Natural Oilfield Services also chose not to comment on the matter.
According to tanker-tracking data compiled by Bloomberg, the Suezmax Front Seoul vessel loaded Utapate crude on July 24 and is currently en route to Las Palmas in the Canary Islands.
The Utapate grade is destined for processing in European and Asian refineries, with the inaugural shipment scheduled for delivery to Spanish refiner Repsol SA.
As a member of the Organisation of Petroleum Exporting Countries (OPEC), Nigeria aims to increase its oil production to over 2 million barrels per day, following years of hindered output due to theft, vandalism, and insufficient investment.
Nigeria’s total crude and condensate production reached approximately 1.5 million barrels per day in June, the highest level since February, according to regulatory data.
The Nigerian National Petroleum Company Limited (NNPC) has set a goal to increase crude oil production to 2 million barrels per day by year-end. During a meeting with maritime stakeholders at the Nigerian Navy Headquarters, NNPC’s Group Chief Executive Officer, Mele Kyari, expressed confidence in achieving this target.
Represented by Folorunsho Karim, Managing Director of Pipeline NNPC, Kyari emphasized the importance of continued efforts by security agencies to combat oil theft and pipeline vandalism, crucial to meeting the company’s production objective.
He said: “The target is to increase production to 2 million barrels by the end of the year, and we are fully committed to doing that. I appreciate the support of the Nigerian Navy in making this possible.
“They have been providing significant support, which has resulted in a reduction in oil
“Pipeline vandalism has also decreased significantly, and there is a lot currently happening in the industry. We hope to sustain this progress to achieve our target of 2 million barrels per day by the end of the year.” (Independence)