Nigeria launches new low-sulfur crude grade, Utapate

Nigeria has introduced a new low-sulphur crude grade called Utapate as part of efforts to boost daily oil production. According to Bloomberg, the Utapate terminal was recently launched in the Niger Delta region and produced almost 19,000 barrels per day in June, with expectations to reach 50,000 barrels per day by the end of 2024.

The Utapate grade, a project by the state-owned Nigerian National Petroleum Company Limited and its venture partner Natural Oilfield Services Limited, saw its first export cargo loaded last month. The light and low-sulphur crude is one of several grades produced in Nigeria.

Tanker-tracking data shows that the Suezmax Front Seoul loaded Utapate on July 24 and is currently en route to Las Palmas in the Canary Islands. The Utapate grade is intended for processing in both Europe and Asia, with the first shipment destined for the Spanish refiner Repsol SA.

As of June, Nigeria’s daily oil production was 1.25 million barrels per day, according to the Organisation of the Petroleum Exporting Countries and the Nigerian Upstream Petroleum Regulatory Commission. NUPRC Chief Executive Gbenga Komolafe recently reported that daily production rose to 1.6 million barrels per day in July, although this has yet to be confirmed as official data for July is not yet available.

The NNPC has also stated its goal to reach a production rate of 2 million barrels per day, which experts say is necessary to meet the demand of 450,000 barrels per day for Dangote and other local refineries as directed by President Bola Tinubu.