- Nigeria would unveil its latest crude grade, Obodo, to the market in April
- Obodo is produced by Nigerian independent Continental Oil & Gas from onshore oil block OML 150 in the Niger Delta region
- The crude grade adds to Nigeria’s growing supply of medium-sweet crude grades
Nigeria is set to take its latest crude oil grade, medium-sweet Obodo, to the market in April as the country continues to expand its crude portfolio.
According to an essay reviewed by Argus Media, an independent energy and commodity price benchmarks provider, the Obodo crude grade has a gravity of 27.65°API and a sulphur content of 0.05pc.
Argus said the grade is likely to be priced in line with Nigerian medium-sweet Bonga, though details on production levels were not immediately available.
It further stated that two sources disclosed that Obodo will be produced by Nigerian independent Continental Oil & Gas from onshore oil block OML 150 in the Niger Delta region, and state-owned Nigeria National Petroleum Corporation Limited (NNPCL) will market the crude.
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that Continental Oil has a stake in OML 150 under a production-sharing contract, which typically exists between the government and a private company.
Nigeria’s growing supply of medium-sweet crude grades
The newest Nigerian crude grade adds to the country’s growing supply of medium-sweet grades.
Recall that the NNPCL restarted the production of low-sulphur Utapate crude grade in 2024, produced from the field in OML 13 in Akwa Ibom State, and is similar to the Nembe crude oil grade, launched in 2023.
As of January 2025, the NNPCL said it achieved a 319.88 per cent increase in the production of Utapate, which reached 1.29 million barrels per month from 309,434 barrels produced in May 2024.
Nigerian medium sweets include Forcados, Escravos, and Bonga, which have found markets 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 reportedly faced declined demand in the April trade cycle following the ample availability of lower-priced alternatives such as US WTI, Caspian CPC Blend, and other Mediterranean grades, favourable to European buyers.
The trade cycle has since shifted to May, and market participants say as many as 15 April-loading Nigerian cargoes are still looking for buyers.
NUPRC aims to increase oil production by year end
In early March, the NUPRC outlined a plan to add 1.07 million barrels per day (bpd) to the country’s crude oil output by December 2026.
The NUPRC said the plan includes an injection of capital into Nigerian oil blocks through joint ventures, production-sharing contracts, and sole risk contracts.
Nigeria has struggled to increase its upstream investment and has fallen short of its Organisation of Oil Producing Countries (OPEC+) production quota in recent years.
Nigeria’s crude production fell by 4.5 per cent month-on-month to 1.47 million bpd in February, according to NUPRC, below its OPEC+ quota of 1.5 million bpd.
NNPCL unveils Utapate crude grade to global market, eyes 80,000 bpd by 2025
Meanwhile, TheRadar reported that the Nigeria National Petroleum Corporation Limited (NNPCL) officially unveiled Utapate crude oil blend to the global crude oil market as part of efforts to boost Nigeria’s crude oil production, revenue generation, and economic growth.
According to the statement by the Chief Corporate Communications Officer, NNPC Ltd., Olufemi Soneye, the Utapate crude oil grade was unveiled during a ceremony held at the Argus European Crude Conference in London, United Kingdom, on Wednesday, November 20.
