Nigeria’s national oil company, Nigeria National Petroleum Co. Ltd. (NNPC), has intensified efforts to scale up production of the newly introduced Utapate crude oil blend.
The company, in partnership with Sterling Oil Exploration & Energy Production Co. Ltd. (SEEPCO), aims to double production capacity to 80,000 barrels per day (bpd) by the end of 2025.
This ambitious target is expected to bolster Nigeria’s position in the global crude oil market, particularly among European buyers who demand low-sulfur and environmentally sustainable products.
NNPC Exploration and Production Ltd. managing director Nicholas Foucart highlighted the rapid progress in ramping up production at the Utapate Field. Speaking at the Argus European Crude Conference in London, Foucart stated:
“Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day with minimum downtime.
“So far, we have exported five cargoes, largely to Spain and the East Coast of the United States, while two additional cargoes have been secured for November and December 2024.”
Nicholas Foucart, Managing Director of NNPC Exploration and Production Ltd.
The Utapate Field, situated within Oil Mining Lease (OML) 13 in Akwa Ibom State, is emerging as a key player in Nigeria’s crude oil exports.
Spanning 1,987 square kilometers in the oil-rich Niger Delta, OML 13 holds significant reserves, including 330 million barrels of petroleum, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.
Produced in the Utapate Field located within Oil Mining Lease (OML) 13 in Akwa Ibom state, the crude oil blend is characterized by its light sweetness and low sulfur content of 0.0655%.
NNPC claimed the blend’s low carbon footprint, attributed to gas flaring elimination, aligns with the specifications required by European buyers.
The Utapate development involved converting swamp and marine wells into land-based operations. Developers drilled 40 wells and constructed key infrastructure, including a storage tank, a subsea pipeline, and an offshore loading platform.
Scaling Up Production
The NNPC and SEEPCO partnership plans to escalate Utapate production through multiple development phases.
“We have a number of ongoing projects to increase our production from the current 40,000bopd [barrels of oil per day] to 50,000bopd by January 2025 and 60,000bopd to 65,000bopd by June 2025,” Foucart revealed. The ultimate target is to achieve 80,000 bpd by the end of 2025.
The Utapate development has involved extensive infrastructure upgrades, including the conversion of swamp and marine facilities into land-based operations. To date, 40 wells have been drilled, complemented by the construction of storage tanks, a subsea pipeline, and an offshore loading platform.
The Utapate Field is part of Nigeria’s broader strategy to increase its hydrocarbon production capacity. Recently, Nigeria’s overall oil production rose to 1.8 million barrels per day (MMbd), up from 1.43 MMbd in June, with a target to reach 2 MMbd by the end of 2024.
Additional contributions to the country’s output include the Madu and Awoba fields in the Niger Delta, which recently began or resumed production.
The Madu field is expected to maintain an average output of 20,000 bpd, while Awoba’s production has risen from an initial 8,000 bpd to a projected 12,000 bpd within weeks of its April restart.
NNPC noted that its efforts to boost crude oil production are bolstered by strategic partnerships with major industry players. For instance, its joint venture with Chevron Nigeria Ltd. aims to achieve a production capacity of 165,000 bpd by the end of 2024.
This collaboration, supported by the Petroleum Industry Act (PIA), is expected to significantly enhance Nigeria’s crude output.
The doubling of Utapate crude production to 80,000 bpd by 2025 represents a milestone in NNPC’s long-term strategy to solidify Nigeria’s position in the global energy market.
Coupled with advancements in other fields and adherence to the Petroleum Industry Act, the country’s crude production trajectory is poised for significant growth.
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