Nigeria plans to launch a new crude grade, medium sweet Obodo, in April to enhance its crude offerings. Obodo has a gravity of 27.65°API and 0.05% sulfur content, with pricing expected to align with Nigeria’s Bonga crude.Produced by Continental Oil & Gas from OML 150 in the Niger Delta, Obodo will be marketed by state-owned NNPC.
While production levels remain undisclosed, the new grade will expand Nigeria’s supply of medium sweet crude.NNPCL resumed production of Utapate in 2024 after launching Nembe in 2023.
Nigeria’s medium sweet crudes, like Forcados, Escravos, and Bonga, mainly serve the European market, where Obodo may also gain traction as refinery maintenance ends in April-May.However, Nigerian crude faces weak demand due to cheaper alternatives like US WTI and Caspian CPC Blend. As the trade cycle shifts to May, 15 April-loading Nigerian cargoes remain unsold.
Meanwhile, NUPRC plans to boost Nigeria’s liquids output by 1.07 million b/d by December 2026.Nigeria plans to boost oil output through investments in joint ventures and contracts. However, it has struggled to meet targets. In February, crude production fell to 1.47mn b/d, just below its 1.5mn b/d OPEC+ quota.
