Nigeria’s low-sulphur crude oil, Utapate, has seen a third consecutive month of production decline, raising concerns over the stability of the country’s new oil stream.
According to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), production fell to 1.155 million barrels in April, a drop from 1.226 million in March and 1.189 million in February.
This continues a steady decline from January’s peak of 1.299 million barrels.Extracted from Oil Mining Lease 13 and operated by NNPC Exploration & Production Limited in partnership with Natural Oilfield Services Limited, Utapate was initially celebrated as a game changer for Nigeria’s oil sector.
The stream is now producing just 28,000 barrels per day, well below the 50,000 bpd target set by the Nigerian National Petroleum Company Limited (NNPCL).
In January, it stood at 41,910 bpd.Despite recent setbacks, early figures showed impressive growth. From 309,434 barrels in May 2024, output rose steadily, peaking in January 2025.
However, the current slump may be due to what analysts describe as “logistical, technical, or operational challenges common in new field developments.”At the official launch in August 2024, Mr. Nicholas Foucart, Managing Director of NNPC E&P Ltd, called Utapate “a milestone in Nigeria’s energy export ambitions.”
“Utapate gives Nigeria a competitive edge in the light-sweet crude segment,” he added.With a low sulphur content of 0.0655%, Utapate is attractive to buyers in environmentally-conscious markets. Spanish oil giant Repsol bought the first cargo of 950,000 barrels, followed by UK’s Gulf Transport and Trading.
Meanwhile, the NUPRC also reported zero production from five oil fields in April—Ima, Ajape, Anambra Basin, Ukpokiti, and Asaramatoru—raising broader concerns about operational inefficiencies and underinvestment.
Still, the report noted an overall uptick in Nigeria’s oil sector, with national crude output reaching 1.48 million barrels per day, or 99% of the OPEC quota, compared to 1.40 million in March.
As the industry grapples with production hurdles, stakeholders are calling for urgent reforms to secure Nigeria’s position in the global oil market.
