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November 20, 2024
Nigeria is seeking term customers for its new crude oil grade Utapate and is aiming to double output by the end of 2025 from 40,000 barrels per day, state-owned NNPC and venture partner Natural Oilfield Services said at the grade’s official launch.
The launch is part of Nigeria’s push to boost its oil production, which has long been hindered by unrest and crude theft, despite the West African producer being a part of an ongoing OPEC+ production cut pact.
The venture partners are eyeing a rise in Utapate output to 50,000 bpd in January, 60,000 bpd in June and 80,000 bpd by the end of 2025.
“We are really interested to see if we can do a term contract with the refineries in Europe and U.S. east coast that we have seen a significant appetite for the cargoes from,” said NNPC Trading Managing Director Lawal Sade at the Argus European Crude Conference on Wednesday.
“We’re running at around 40,000 bpd, so we can predict how much we can load,” Sade added, citing increased security around the production area.
At 40,000 bpd, NNPC is aiming to load and market around one Suezmax-sized cargo – around 1 million barrels – per month.
Five Utapate cargoes have loaded since July, with two more expected before the end of this year. Of those five, two were sold to Spain’s Repsol and three were delivered to end users on the U.S. east coast, delegates at the conference heard.
The grade has an API gravity of around 44 and a sulphur content of around 0.07%, meaning it will compete with other Nigerian grades such as Amenam and Agbami, as well as grades like Azeri Light on international markets, Sade said.
Production at the Utapate field began in May. The block has proven oil reserves of 926 million barrels.
REUTERS
