Nigeria’s New Crude Grade Boosts Production Target …C0NTINUE READING HERE >>>
Nigeria has added a new crude grade known as Utapate, as Africa’s biggest oil producer strives to return output to pre-pandemic levels.
A subsidiary of the Nigerian National Petroleum Company Limited (NNPC) and venture partner Natural Oilfield Services loaded the first export cargo last month, according to people familiar with the matter.
They declined to be identified because the information isn’t public.
The Utapate, a light, low-sulphur oil from the Niger Delta region is one of several dozen grades produced in Nigeria. The Utapate terminal produced almost 19 000 barrels a day in June, according to Bloomberg calculations from regulatory data.
Output could reach 50 000 barrels a day by the end of the year, according to one of the people.
The NNPC did not immediately respond to a request for comment.
The Natural Oilfield Services also declined to comment.
The Suezmax Front Seoul loaded Utapate on July 24 and is now headed for Las Palmas in the Canary Islands, tanker-tracking data compiled by Bloomberg show.
The grade will be processed in Europe and Asia, with the first shipment directed to Spanish refiner Repsol SA.
Nigeria, a member of the Organisation of Petroleum Exporting Countries, is seeking to boost oil output to more than 2 million barrels a day, after theft, vandalism and lack of investment hampered production in recent years.
Its total crude and condensate production was about 1.5 million barrels per day in June, the highest since February, regulatory data show.
LEADERSHIP reports that the NNPC recently announced its goal to increase crude oil production to 2 million barrels per day by the end of the year.
Speaking during a meeting with Maritime Stakeholders at the Nigerian Navy Headquarters, the group chief executive officer, of NNPC, Mele Kyari, expressed optimism that the target would be met, emphasising that NNPCL was fully committed to achieving it.
Represented by Folorunsho Karim, managing director of Pipeline NNPC, Kyari urged security agencies to continue their efforts against oil theft and pipeline vandalism to help the company meet its target.
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 theft.
“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.”
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