A new Nigerian crude grade, medium sweet Obodo, is set to enter the market in April 2025. According to Argus Media, Nigeria is steadily expanding its crude portfolio with this addition.
An assay reviewed by Argus indicates that Obodo has a gravity of 27.65°API and a sulphur content of 0.05pc. The grade is likely to be priced in line with Nigerian medium sweet Bonga, though details on production levels were not immediately available.
Nigerian independent Continental Oil & Gas will produce Obodo from onshore oil block OML 150 in the Niger Delta region, and state-owned NNPC will market the crude. Data from the Nigerian Upstream Petroleum Regulatory Commission shows Continental Oil has a stake in OML 150 under a production-sharing contract.
Obodo will add to Nigeria’s growing supply of medium-sweet grades, following the restart of similar-quality Utapate in 2024 and the launch of Nembe in 2023. Nigerian medium sweets, including Forcados, Escravos, and Bonga, have predominantly found markets in Europe—the largest market for Nigerian crude. Obodo could also find favor with European refineries, where seasonal maintenance is scheduled to wind down by the end of April and early May.
Nigerian grades have faced tepid demand in the April trade cycle as ample availability of lower-priced alternatives such as US WTI, Caspian CPC Blend, and other Mediterranean grades enticed European buyers. The trade cycle has since shifted to May, with as many as 15 April-loading Nigerian cargoes still looking for buyers.
Nigeria’s upstream regulator NUPRC outlined a plan in March to add 1.07 million barrels per day to the country’s liquids output by December 2026. The plan forecasts an injection of capital into Nigerian oil blocks through joint ventures, production-sharing contracts, and sole risk contracts. However, Nigeria has struggled to mobilize upstream investment and has consistently fallen short of less ambitious production growth targets in recent years. The country’s crude production fell by 4.5% month-on-month to 1.47 million b/d in February, just under its OPEC+ quota of 1.5 million b/d.
Source: punchng.com
