Nigeria is set to introduce a new medium sweet crude grade, Obodo in April 2024, as reported by Argus Media, which provides business intelligence, market data, and price assessments for global industries.
Obodo crude has a gravity of 27.65°API and a sulfur content of 0.05%, according to an assay seen by the company.
A source indicated it would likely be priced similarly to Nigeria’s medium sweet Bonga crude. However, production details were not immediately available, the report noted.
Nigerian independent Continental Oil & Gas will produce Obodo crude from onshore oil block OML 150 in the Niger Delta, while state-owned NNPC will handle its marketing, according to two sources.
The Nigerian Upstream Petroleum Regulatory Commission data confirms that Continental Oil holds a stake in OML 150 under a production sharing contract, a common arrangement between the government and private companies.
Obodo will join Nigeria’s expanding supply of medium sweet crude grades.
NNPC restarted production of Utapate in 2024, following the launch of Nembe in 2023.
Nigeria’s medium sweet crudes, such as Forcados, Escravos, and Bonga, are primarily exported to Europe, the country’s largest crude market. Obodo could also attract European refiners, especially as seasonal maintenance wraps up by late April to early May.
Nigerian crude grades have seen weak demand in the April trade cycle, as European buyers opted for cheaper alternatives like US WTI, Caspian CPC Blend, and other Mediterranean grades.
With the trade cycle now shifting to May, market participants report that up to 15 April-loading Nigerian cargoes are still seeking buyers.
Nigeria’s upstream regulator, NUPRC, announced a plan in March to boost the country’s liquids output by 1.07 million bpd by December 2026.
The plan aims to attract capital into Nigerian oil blocks through joint ventures, production-sharing contracts, and sole risk contracts, according to the report.
Nigeria has faced challenges in attracting upstream investment and has repeatedly missed its production growth targets in recent years. In February, the country’s crude output dropped by 4.5% to 1.47 million bpd, according to NUPRC, falling just below its OPEC+ quota of 1.5 million bpd.
