New Nigerian Crude Oil, Sweet Obodo To Hit Market In April

A new Nigerian crude oil grade, known as medium sweet Obodo, is set to hit the market in April.

Obodo has a gravity of 27.65 degrees API and a sulphur content of 0.05pc.

Details on production levels have not been revealed, but theNigerian independent Continental Oil & Gas will produce Obodo from onshore oil block OML 150 in the Niger delta region, and the NNPC will market the crude.

The newest Nigerian crude will add to a growing supply of medium sweet grades in the country. NNPC restarted production of similar-quality Utapate in 2024, which followed the launch of Nembe in 2023.

Nigeria’s other medium sweets, including Forcados, Escravos and Bonga, have predominantly found an outlet in Europe — the largest market for Nigerian crude.

Obodo could also find favour with European refineries, where seasonal maintenance is scheduled to wind down by the end of April and early May.

Nigerian grades have faced tepid demand in the April-trade cycle as ample availability of lower-priced alternatives such as US WTI, Caspian CPC Blend and other Mediterranean grades entice European buyers

Nigeria’s upstream regulator, the Nigerian Upstream Petroleum Commission or NUPRC in March outlined a plan to add 1.07 million bpd to the country’s liquids output by December 2026. The plan forecasts an injection of capital into Nigerian oil blocks through joint ventures, production-sharing contracts and sole risk contracts, the report said.

Nigeria has struggled to mobilise upstream investment and has consistently fallen short of less ambitious production growth targets in recent years.

The country’s crude production fell by 4.5 per cent on the month to 1.47 million bpd in February, according to the NUPRC — just under its OPEC+ quota of 1.5 million barrels per day.

The new grade is likely to be priced in line with Nigerian medium sweet Bonga.

Editor Paul Akhagbemhe