NNPC, Nigeria’s NOC, introduced its Utapate crude oil blend at the Argus European Crude Conference in London on Wednesday.
The state-of-the-art $20 billion refinery was launched in January 2024, but only began producing gasoline in September, expected to reach full operations in November. The giant refinery has a capacity to process 650,000 barrels of crude per day, more than enough for the country’s needs. To sweeten the deal further, the facility is buying crude and selling refined fuels in Nigeria in the local currency, saving the country’s much-needed foreign exchange, especially the US dollar.
The deal between the Chinese state-owned CNCEC and the BFI Group, a major investor in the Aluminum Smelter Company of Nigeria, is expected to revive the 135 million standard cubic feet gas processing facility plant at the smelter. It was announced Tuesday by Nigeria’s minister of state for gas via a post on the social platform X.
NNPCL officials have hailed the agreement as unprecedented, particularly due to its zero capital expenditure outlay, making it a pioneering initiative in Nigeria’s gas distribution sector.
Nigeria has faced challenges in adhering to its OPEC+ quota due to production disruptions caused by underinvestment, theft and vandalism, especially in the Niger Delta region.
Alhaji Bamanga Usman Jada praised the partnership, stating, “We welcome Ultra Capital Energy Limited’s commitment to Nigeria’s oil and gas sector. This collaboration will significantly contribute to the growth and development of the Liberty Oil and Gas Free Zone.”
The Organisation of Petroleum Exporting Countries (OPEC) yesterday lowered the demand forecast for crude oil amid tumbling prices as Nigeria pumped 1.4 million barrels of oil per day in October.
According to NUPRC, Nigeria’s current production rate, including crude oil and condensates, has reached 1.8 million barrels per day (bpd), up from 1.54 million bpd in September, with plans to push this figure to 2 million bpd by year-end.
The Nigerian government is working to slash oil project timelines and cut industry costs by 40 per cent through new executive orders signed by President Bola Ahmed Tinubu.
The acquisitions of Eni’s Nigerian Agip Oil Company Ltd. by Oando and those of Equinor by Project Odinmim Investments Ltd. were announced at an industry event Wednesday in Abuja. The prices weren’t disclosed.