Nigeria is set to boost its crude oil production with the launch of the Utapate terminal in the Niger Delta region.
Gatekeepers News reports that the new terminal produced nearly 19,000 barrels per day (bpd) in June and is projected to reach a production capacity of 50,000 bpd by the end of the year, according to data from Bloomberg.
The Utapate terminal, a subsidiary of state-owned Nigerian National Petroleum Company (NNPC) Limited, and venture partner Natural Oilfield Services Limited, achieved a milestone last month by loading its first export cargo.
This development marks a significant step in Nigeria’s efforts to increase its oil production from the current 1.27 million bpd to 2 million bpd, which was the country’s pre-pandemic production level in 2019.
The Utapate grade, a light and low-sulfur oil from the Niger Delta region, is one of the numerous crude grades produced in Nigeria.
According to tanker-tracking data compiled by Bloomberg, 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 set to be processed in both Europe and Asia, with the first shipment destined for the Spanish refiner Repsol SA.
This new terminal is a crucial addition to Nigeria’s oil production infrastructure, and its increased capacity is expected to significantly contribute to the country’s oil output.
The Utapate terminal’s production will help Nigeria restore its pre-pandemic oil production levels, strengthening its position in the global oil market.
