India’s Hindustan Petroleum Corp (HPCL) has purchased two million barrels of Nigeria’s Utapate and Okwuibome crude grades for delivery in late September. This transaction highlights the sustained demand for Nigeria’s premium crude grades from major Asian refining hubs.
HPCL acquired the cargoes from commodities trader Glencore through a tender process. The crude is destined for HPCL Rajasthan Refinery Ltd (HRRL), which operates a 180,000 barrel-per-day (bpd) refinery in Rajasthan, India.
HPCL holds a 74% stake in HRRL, while the Rajasthan state government holds the remaining 26% stake. The exact financial terms and pricing of the transaction were not disclosed.
Utapate Grade Gains Global Traction
The inclusion of Utapate crude in this transaction is significant as it represents one of Nigeria’s newest export grades. NNPC Limited and its partner, Sterling Oil Exploration & Energy Production Company (SEEPCO), introduced the Utapate blend in July 2024 with an initial shipment of 950,000 barrels to Spain.
Produced from the Utapate field in OML 13 in Akwa Ibom State, the blend is similar in quality to the Nembe crude grade. It features a low sulfur content of approximately 0.0655% and a low carbon footprint due to flare gas elimination, making it highly attractive to international refiners.
The grade has quickly become a key asset in Nigeria’s offshore portfolio. In April 2026, when Nigeria’s combined crude oil and condensate production averaged 1.663 million bpd, the Utapate field delivered 1.78 million barrels during the month.
The Okwuibome field, also located offshore Akwa Ibom State, is another premium Nigerian crude grade included in the purchase.
Nigeria Oil Production and NNPC Earnings
This export deal comes as Nigeria’s crude oil production shows signs of recovery. According to data from the Organization of Petroleum Exporting Countries (OPEC), Nigeria’s average daily crude oil production increased to 1.530 million bpd in May 2026, up from 1.489 million bpd in April.
Despite the production recovery, NNPC Limited continues to face earnings pressure. The state-owned oil company recorded a profit after tax of N2.28 trillion in the first half of 2026, representing a 35.4% decline from the N3.53 trillion recorded in the first half of 2025.
However, NNPC remained profitable throughout the first half of 2026, with monthly earnings strengthening from March and reaching a year-high of N535 billion in June. The latest purchase by HPCL reinforces the role of export demand in supporting Nigeria's fiscal recovery.
