Production from Nigeria’s recently launched low-sulphur crude grade, Utapate, has continued on a downward trajectory for the third month in a row, underscoring mounting concerns over the performance of one of the country’s latest upstream assets.
According to official data released by the Nigerian Upstream Petroleum Regulatory Commission, output from the Utapate stream fell to 1.155 million barrels in April 2025. This marks a decline from 1.226 million barrels recorded in March, and 1.189 million barrels in February. In January, production stood at 1.299 million barrels, reflecting a consistent month-over-month decline since the beginning of the year.
The Utapate blend is produced from Oil Mining Lease (OML) 13, operated by NNPC Exploration & Production Limited in joint venture with Natural Oilfield Services Limited, a subsidiary of SEEPCO Ltd.
With an average daily production of approximately 28,000 barrels, the Utapate stream remains well below the 50,000 barrels-per-day target previously set by the Nigerian National Petroleum Company Limited—highlighting the gap between current output and projected benchmarks.
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The company was producing 41,910 barrels per day in January.
Despite the recent slump, historical data show that Utapate output had witnessed a significant ramp-up in its early stages.
A month by month breakdown showed that Utapate crude oil production rose steadily from 309,434 barrels in May 2024 to a peak of 1.299m barrels in January 2025, before experiencing a decline to 1.155m barrels by April 2025, following intermediate figures of 567,302 barrels in June, 754,222 in July, 996,070 in August, 1.150m in September, 1.130m in October, 1.160m in November, 1.220m in December, 1.189m in February, and 1.226m in March.
When Nigeria introduced Utapate crude to the global market in August 2024, the announcement was wrapped in fanfare and strategic optimism. With a sulphur content of just 0.0655 percent, the ultra-light, low-emission crude promised a competitive edge in a world increasingly governed by environmental constraints. But less than a year later, the mood is more measured.
Production from the Utapate stream has declined steadily for four consecutive months. April figures place total output at 1.155 million barrels—down from 1.226 million in March, 1.189 million in February, and 1.299 million in January. This pattern, while not unusual in early-stage fields, has cast a long shadow over expectations set by the Nigerian National Petroleum Company Limited (NNPCL), which had targeted a daily output of 50,000 barrels. At present, the stream delivers just over half that figure, averaging 28,000 barrels per day.
Oilfield analysts suggest the decline reflects a confluence of early-stage constraints: infrastructural limitations, suboptimal well performance, and the complexities inherent in new field integration. The Utapate stream, extracted from Oil Mining Lease 13 and operated by NNPC Exploration & Production Limited in partnership with Natural Oilfield Services Limited (a SEEPCO subsidiary), remains in the critical proving phase of its lifecycle.
Still, the debut of Utapate on the global crude calendar was a diplomatic and commercial statement. At its launch during the Argus European Crude Conference in London, Nicholas Foucart, Managing Director of NNPC E&P Ltd, hailed it as a pivotal addition to Nigeria’s export arsenal—framing the blend as a cornerstone of the country’s renewed push toward cleaner, more competitive energy exports.
That vision was quickly validated in trading circles. Spanish energy giant Repsol clinched the bid for the inaugural cargo of 950,000 barrels, while UK-based Gulf Transport and Trading secured subsequent shipments through August and September 2024.
But as market enthusiasm meets operational reality, the narrative around Utapate is shifting—from promise to performance. Nigeria’s ability to scale output, stabilize logistics, and maintain the blend’s competitive purity will ultimately determine whether Utapate becomes a flagship product or another cautionary tale of early celebration and delayed delivery.