NNPC Launched New Crude Grade to the International Market

SEATTLE (Oil Monster):  The Nigerian state oil firm, the Nigerian National Petroleum Corporation (NNPC) announced sales of its first cargoes of a new crude grade, Utapate, to both Europe and Asia.

Reportedly, the first buyers of the crude grade are Spain's Repsol and Dubai-based Gulf Transport and Trading (GTT). It must be noted that countries such as Spain and the UAE has been diversifying their oil sources.

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The launching of the new crude grade into the international market is considered as a major milestone. The successful sale to Repsol and GTT underscores the huge demand for the grade. The move is expected to boost NNPC’s revenue streams, in addition to diversifying its export portfolio.

The entry of NNPC into the global market with Utapate crude will restructure the existing supply dynamics. It is expected to potentially affect global oil prices and worldwide refining operations. It needs to be seen whether the new grade will be able to maintain sustained demand.

The Utapate crude is a light and low-sulphur oil, one among the several crude grades produced in Nigeria. The low sulphur content and ease of processing of the grade makes it more attractive for refineries.

According to data released by the OPEC and NUPRC, the country’s daily production stood at 1.25 million barrels per day as of June this year.