The Nigerian National Petroleum Corporation Limited (NNPC Ltd) has announced the international debut of its new crude oil grade, the Utapate blend, six months after commencing production.

The move is expected to significantly bolster Nigeria’s crude oil exports, revenue generation, and economic growth.

In a statement released Wednesday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, said the crude blend was unveiled at the Argus European Crude Conference in London.

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The launch follows the dispatch of the first cargo in July 2024, which delivered 950,000 barrels to Spain.

The Utapate crude oil blend, produced from the Utapate field in Oil Mining Lease (OML) 13 in Akwa Ibom State, is notable for its low sulphur content of 0.0655% and reduced carbon footprint, achieved through gas flare elimination.

These characteristics align with the preferences of European refiners, positioning the blend as an environmentally sustainable and economically attractive option.

According to NNPC E&P Limited Managing Director Nicholas Foucart, production has ramped up rapidly since operations began in May 2024.

“We have rapidly ramped up production to 40,000 barrels per day with minimal downtime,” Foucart said.

“So far, we have exported five cargoes, largely to Spain and the East Coast of the United States, while two additional cargoes are set for export in November and December 2024. This represents a significant boost to Nigeria’s crude oil export portfolio.”

Foucart added that the Utapate field is estimated to hold 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.

Production is set to increase further, with targets of 50,000 barrels per day by January 2025 and 80,000 barrels per day by the end of 2025.

“The Utapate crude oil terminal is sustainable, affordable, and fully compliant with rigorous environmental regulations and sustainability principles, particularly those aimed at reducing carbon emissions and other ecological impacts,” Foucart emphasized.

NNPC Trading Limited’s Managing Director, Lawal Sade, described the Utapate crude oil blend as a highly sought-after product in the international market.

He noted that its pricing structure mirrors that of the Amenam crude oil grade, known for its light, sweet properties, low sulphur content, and high yield of premium products.

“The Utapate blend is an excellent match for refiners globally, offering the efficiency and quality they demand,” Sade stated. “In introducing this product to the market, our aim is to optimize value for both producers and global buyers.”

The Utapate field’s development, which took place between 2013 and 2019, involved converting operations from swamp and marine-based facilities to land-based ones, enhancing operational efficiency and sustainability.

This new crude grade follows the successful introduction of the Nembe crude oil blend in 2023, underscoring NNPCL’s commitment to expanding Nigeria’s footprint in the global energy market.

Foucart highlighted the broader vision for Utapate’s growth. “Our ongoing projects aim to increase production to 60,000–65,000 barrels per day by mid-2025, ultimately reaching 80,000 barrels by the year’s end.

This expansion not only strengthens our market position but also contributes significantly to Nigeria’s economic development,” he said.

A British Virgin Islands (BVI) court has authorised Chinese investors, Zhongshan Fucheng Industrial Investment Co. Limited, to seize $25 million from Nigeria’s foreign-denominated assets.

The decision stems from Nigeria’s failure to honour a $74.5 million arbitral award relating to the defunct Ogun Free Trade Zone project.

Justice Paul Webster of the British Virgin Islands High Court ruled that Nigeria could not claim immunity from the enforcement of the arbitral award due to the terms of the bilateral investment treaty between China and Nigeria.

This ruling adds to a series of legal defeats Nigeria has faced in foreign courts, including jurisdictions such as the UK, France, Belgium, Canada, and the United States.

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Zhongshan’s legal representation in the BVI case included King’s Counsel Timothy Otty and Lauren Peaty of Withers British Virgin Islands.

The dispute traces back to a failed agreement involving the Ogun State government and Zhongshan investors. The investors allege that the former Ogun State governor, Ibikunle Amosun, unilaterally withdrew from the deal and orchestrated their detention, where they were allegedly tortured under the orders of state security agents.

The $25 million seizure follows the Nigerian government’s inability to comply with the $74.5 million arbitral award granted by an independent tribunal, chaired by a former UK Supreme Court President.

The judgment underscores the financial and diplomatic consequences Nigeria continues to face from unresolved investment disputes in international courts.

Nigeria’s three tiers of government – federal, state, and local councils – have collectively shared N1.141 trillion as revenue allocation for October 2024.

The announcement was made on Wednesday by Bawa Mokwa, the Director of Press and Public Relations in the Office of the Accountant General of the Federation (OAGF).

According to Mokwa, the total revenue distributed in October saw a significant increase of N293.009 billion compared to the N1.043 trillion allocated in September 2024. The funds came from the N2.668 trillion gross revenue generated in October.

Breaking down the allocation, the Federal Government received N433.021 billion, state governments got N490.696 billion, and local government councils were allocated N355.621 billion. Additionally, N132.404 billion, representing 13% of mineral revenue, was distributed to oil-producing states as derivation revenue.

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The total distributable revenue of N1.141 trillion included N206.319 billion from statutory revenue, N622.312 billion from Value Added Tax (VAT), N17.111 billion from the Electronic Money Transfer Levy (EMTL), and N566.000 billion as exchange difference revenue.

“In October 2024, oil and gas royalty, excise duty, value-added tax (VAT), import duty, petroleum profit tax (PPT), and companies income tax (CIT) increased significantly, while electronic money transfer levy (EMTL) and CET levies decreased considerably,” the statement noted.

The revenue-sharing process took place during the November 2024 Federation Accounts Allocation Committee (FAAC) meeting in Bauchi State, chaired by the Accountant General of the Federation, Oluwatoyin Madein.

This increase in allocation is expected to bolster the fiscal operations of the federal, state, and local governments as they continue to manage their respective developmental agendas.