New Crude Streams Add 12m Barrels to Nigeria’s Oil Production

Lagos: Nigeria's ambition to raise crude oil production has received a boost from the growing contribution of newly introduced crude grade streams, Utapate and Cawthorne, Saturday PUNCH reports. The crude grades, introduced in 2024 and early 2026, represent the latest additions to the country's basket of crude oil grades aimed at expanding export streams and strengthening oil revenues.

According to Ghana Web, the Nigerian Upstream Petroleum Regulatory Commission's monthly crude and condensate production data showed that the Utapate crude grade produced a total of 8.75 million barrels between January and May 2026, while the newly introduced Cawthorne blend contributed 3.41 million barrels during the same period, bringing the combined output from both crude grades to approximately 12.16 million barrels. The data also indicated that Utapate has yet to achieve its projected output target announced by the government, even as production remained more than 20,000 barrels per day below the 80,000 bpd target set by operators.

The figures showed that Utapate recorded an average daily production of 55,190 barrels in January. Based on the 31-day month, this translated to a total monthly output of 1.71 million barrels. Output increased to 57,970 barrels per day in February, yielding about 1.62 million barrels, before rising marginally to 58,020 barrels daily in March, equivalent to roughly 1.80 million barrels. In April, the field attained its highest daily production level of 59,290 barrels, producing an estimated 1.78 million barrels during the month. Production moderated slightly to 59,170 barrels per day in May but still generated approximately 1.83 million barrels due to the longer calendar month.

However, despite the upward trend, the data indicated that Utapate remained significantly below the 80,000 barrels-per-day target. The field fell short by 24,810 barrels daily in January, 22,030 barrels in February, and 21,980 barrels in March. The production gap narrowed to 20,710 barrels per day in April before widening marginally to 20,830 barrels in May.

The development suggests that although operators have made progress in scaling up production, the ambitious target announced earlier by the Nigerian National Petroleum Company Limited has yet to be realised. The Utapate field, which commenced production in May 2024, had been projected to achieve 80,000 barrels per day by the end of 2025. Speaking at the launch of the Utapate crude blend in July 2024, the Managing Director of NNPC E and P Limited, Nicholas Foucart, expressed confidence that ongoing development projects would substantially increase production capacity.

The Utapate crude blend was introduced into the international market by NNPCL and its partner, Sterling Oil Exploration and Energy Production Company Limited, following the lifting of the maiden cargo of 950,000 barrels destined for Spain. Produced from Oil Mining Lease 13 in Akwa Ibom State, the crude grade possesses characteristics that have attracted international interest. It has a sulphur content of 0.0655 per cent and a relatively low carbon footprint resulting from flare gas elimination.

Meanwhile, another emerging crude stream, Cawthorne, contributed 3.41 million barrels to Nigeria's production between January and May, according to the NUPRC data. The figures showed that Cawthorne's average daily production rose sharply from 12,340 barrels in January to 16,450 barrels in February and 23,970 barrels in March. The field sustained the momentum in April, reaching 30,970 barrels per day before easing slightly to 28,940 barrels daily in May.

NNPC Ltd had recently announced the commencement of exports from the Cawthorne blend, describing the development as part of efforts to increase Nigeria's crude oil production and strengthen the country's position in the global energy market. In a statement, the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, said the first cargo of the new grade was lifted aboard the MT Eburones vessel for shipment to the Netherlands.

The emergence of both Utapate and Cawthorne underscores Nigeria's determination to diversify its crude export portfolio and maximise oil earnings. However, the latest NUPRC figures also highlight the operational challenges facing producers as they strive to convert ambitious output targets into actual barrels. Combined, Utapate and Cawthorne contributed an estimated 12.16 million barrels of crude oil between January and May, providing additional support to Nigeria's broader efforts to sustain production growth and improve foreign exchange earnings from the oil sector.

On Thursday, the NUPRC reported that Nigeria's crude oil production rose above its Organisation of the Petroleum Exporting Countries quota in May 2026, with the country recording its highest crude output in 15 months amid improved operational stability and the absence of major disruptions across key oil facilities. Data released showed that Nigeria produced an average of 1,530,354 barrels of crude oil per day in May, representing 102 per cent of the country's 1.5 million barrels-per-day quota approved by OPEC. When condensate production of 170,446 barrels per day is added, Nigeria's total oil output climbed to 1,700,800 barrels per day, further strengthening the country's position as Africa's largest oil producer and boosting revenue.