Suezmaxes tankers are receiving a much-needed shot in the arm as refiners book tankers to ship out a new Nigerian crude grade.
Nigerian National Petroleum Co (NNPC) has launched the Utapate blend with partner Sterling Oil Exploration & Energy Production Co.
Five cargoes have already been fixed, with more to come.
Oil analytics company Kpler called the launch “a significant milestone for Nigeria’s energy sector”.
Since production began in May 2024, output has reached 40,000 barrels per day.
There are plans to increase to 80,000 bpd by the end of 2025, supported by substantial reserves and robust infrastructure, the company added.
This level would mean a suezmax-sized cargo shipping out every 10 to 12 days.
There has been strong demand from European and US refiners for the light sweet crude with low sulphur content and high-value yields.
Term contracts are being developed for sustained supply, Kpler said.
NNPC called the sales a “major boost for Nigeria’s crude oil production, revenue generation and economic growth efforts”.
Suezmax going to Spain
The first 950,000-barrel cargo left on a suezmax headed for Spain, it added.
Nicholas Foucart, managing director of NNPC exploration & production, added that other cargoes had gone to the east coast of the US.
And two more shipments have been secured for this month and in December.
Foucart also said the Utapate crude oil terminal is sustainable, affordable and fully compliant with rigorous environmental regulations.
Kpler head of oil analysis Viktor Katona told TradeWinds there is a two-way market for the oil currently.
In Spain, Repsol is taking barrels, and in the US, Monroe Energy is fixing ships for trips to its Trainer refinery in Pennsylvania.
Pricing is being linked to Nigeria’s Amenam crude grade at the moment, Katona said.
Spot suezmaxes were averaging $25,500 per day on Friday, up 1% week on week, but 38% lower than last month.
