A new Nigerian crude grade, medium sweet Obodo, is set to enter the market in April. According to sources familiar with the development, Nigeria is steadily expanding its crude oil portfolio. An assay reviewed by Argus shows that Obodo has an API gravity of 27.65° and a sulfur content of 0.05%.
The grade is expected to be priced similarly to Nigeria’s medium sweet Bonga, although specific production levels have not yet been disclosed. Obodo will be produced by the Nigerian independent company, Continental Oil & Gas, from the onshore oil block OML 150 in the Niger Delta region, with state-owned NNPC handling the marketing of the crude, as reported by two sources.
Continental Oil & Gas holds a stake in OML 150 under a production-sharing contract, which is typically a partnership between the government and a private company, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The introduction of Obodo adds to Nigeria’s growing supply of medium-sweet crude grades. Nigerian grades such as Forcados, Escravos, and Bonga have primarily been exported to Europe, which remains the largest market for Nigerian crude. Obodo could also appeal to European refineries, particularly as seasonal maintenance is expected to conclude by the end of April and early May.
Reports indicate that Nigerian crude grades have faced subdued demand in the April trade cycle, with European buyers being enticed by the availability of lower-priced alternatives like US WTI, Caspian CPC Blend, and other Mediterranean grades. As a result, the trade cycle has shifted to May, with up to 15 April-loading Nigerian cargoes still looking for buyers, according to market participants.
In March, Nigeria’s upstream regulator, NUPRC, outlined a plan to add 1.07 million barrels per day (b/d) to the country’s liquid output by December 2026. The plan includes capital injections into Nigerian oil blocks via joint ventures, production-sharing contracts, and sole-risk contracts. However, Nigeria has faced challenges in attracting upstream investment and has struggled to meet even modest production growth targets in recent years.
Nigeria’s crude production fell by 4.5% in February, to 1.47 million b/d, just under its OPEC+ quota of 1.5 million b/d, according to NUPRC.
