Nigeria will introduce a new crude grade known as Obodo in April as the West African nation expands its oil offerings amid changing market dynamics.
Sources familiar with the matter told Argus that the medium sweet crude will be produced by Nigerian independent firm Continental Oil & Gas from onshore block OML 150 in the Niger Delta region, while state owned NNPC will handle marketing.
Obodo has a gravity of 27.65°API and a sulfur content of 0.05pc. A source suggested that the grade could be priced similarly to Nigeria’s Bonga crude, another medium sweet variety.
However, details on production volumes remain unclear.
Obodo will add to Nigeria’s increasing supply of medium sweet crude grades. NNPC restarted production of Utapate in 2024, following the launch of Nembe in 2023.
The country’s established medium sweet grades such as Forcados, Escravos, and Bonga have largely catered to European refiners, a trend that may continue with Obodo, especially as seasonal maintenance at European refineries is expected to ease by late April or early May.
Despite this, Nigeria’s crude has faced subdued demand in the April trade cycle, with buyers opting for lower cost alternatives such as US WTI, Caspian CPC Blend, and Mediterranean grades.
The market has since transitioned to May loading cargoes, but traders noted that at least 15 April loading Nigerian shipments were still unsold.
Nigeria’s upstream regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has projected an increase of 1.07mn b/d in the country’s total liquids production by December 2026.
The plan focuses on attracting investment through joint ventures, production-sharing contracts, and sole risk agreements.
However, Nigeria has struggled to meet previous production targets due to limited upstream investment and operational setbacks.
In February, crude output fell by 4.5pc from the previous month to 1.47mn b/d, according to NUPRC data just below its OPEC+ quota of 1.5mn b/d.
An oil analyst noted that the introduction of Obodo is part of Nigeria’s broader efforts to stabilize its crude exports.
“New grades help diversify Nigeria’s crude slate, but securing buyers remains a challenge, especially with growing competition from cheaper alternatives,” the analyst said.
