Nigeria is set to expand its crude oil portfolio with the introduction of a new medium-sweet crude grade, Obodo, expected to enter the market in April.
According to Argus Media, an independent energy and commodity price benchmarking provider, industry sources confirmed that Nigeria continues to diversify its crude offerings.
An assay reviewed by Argus indicates that Obodo has a gravity of 27.65° API and a sulphur content of 0.05%, positioning it within the medium-sweet category. The new grade is expected to be priced similarly to Nigeria’s Bonga crude, though specific production levels have not yet been disclosed.
Continental Oil & Gas, a Nigerian independent producer, will extract Obodo from OML 150, an onshore oil block located in the Niger Delta region. The Nigerian National Petroleum Company Limited (NNPC) will be responsible for marketing the crude, according to industry sources.
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirms that Continental Oil holds a stake in OML 150 under a production-sharing contract, a common agreement between the government and private-sector operators.
Expanding Nigeria’s Medium-Sweet Crude Portfolio
The addition of Obodo further strengthens Nigeria’s supply of medium-sweet crude grades. This follows the 2024 restart of Utapate production by NNPC and the 2023 launch of Nembe.
Historically, Nigerian medium-sweet grades—including Forcados, Escravos, and Bonga—have been primarily supplied to European refineries, which remain a key market for Nigerian crude. Obodo is also expected to attract European buyers, particularly as seasonal refinery maintenance in the region winds down by late April and early May.
However, Nigerian crude grades have faced weakened demand in the April trade cycle, as European refiners increasingly opt for lower-priced alternatives such as U.S. WTI, Caspian CPC Blend, and Mediterranean grades. The market has since shifted to May cargoes, with reports indicating that up to 15 April-loading Nigerian shipments are still seeking buyers.
Nigeria’s Crude Production Outlook
In March, NUPRC outlined an ambitious plan to increase Nigeria’s crude oil and liquids output by 1.07 million barrels per day (b/d) by December 2026. The strategy involves attracting capital investments into the upstream sector through joint ventures, production-sharing contracts, and sole-risk agreements.
Despite these efforts, Nigeria has struggled to meet production growth targets in recent years due to investment challenges. In February, the country’s crude output declined by 4.5% month-on-month to 1.47 million b/d, falling just short of its 1.5 million b/d OPEC+ quota, according to NUPRC data.
The introduction of Obodo represents another step toward bolstering Nigeria’s crude production capacity and diversifying its offerings in the global energy market.
