The Traffic

"Nigeria Introduces Utapate, a New Low-Sulfur Crude Grade

Nigeria has launched a new low-sulfur crude grade, Utapate, as part of its efforts to increase daily oil production. The Utapate terminal, located in the Niger Delta region, commenced operations recently and produced approximately 19,000 barrels per day in June. Production is expected to reach 50,000 barrels per day by the end of 2024.

Utapate, a joint venture between Nigerian National Petroleum Company Limited (NNPC) and Natural Oilfield Services Limited, exported its first cargo last month. The light and low-sulfur oil is one of several crude grades produced in Nigeria.

According to tanker-tracking data, 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 destined for processing in both Europe and Asia, with the first shipment headed to Spanish refiner Repsol SA.

Nigeria's daily oil production stood at 1.25 million barrels per day in June, according to the Organisation of the Petroleum Exporting Countries (OPEC) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). However, NUPRC Chief Executive Gbenga Komolafe recently reported a rise in production to 1.6 million barrels per day in July, although this figure has yet to be confirmed.

The NNPC aims to achieve 2 million barrels per day, which would enable the company to supply 450,000 barrels per day to local refineries, including Dangote, as directed by President Bola Tinubu."