Nigeria is set to expand its crude oil portfolio with the introduction of a new medium sweet crude grade, Obodo. The Obodo crude grade, which will be produced by Nigerian independent Continental Oil & Gas, is expected to enter the market in April.
According to an assay reviewed by Argus Media, Obodo has a gravity of 27.65°API and a sulphur content of 0.05pc, making it a desirable grade for European refineries.
In the same vein, The introduction of Obodo is part of Nigeria’s efforts to increase its crude oil production and expand its market share. The country’s upstream regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has outlined a plan to add 1.07mn b/d to Nigeria’s liquids output by December 2026. This plan includes injecting capital into Nigerian oil blocks through joint ventures, production-sharing contracts, and sole risk contracts.
Nigeria has struggled to mobilize upstream investment in recent years, consistently falling short of its production growth targets. The country’s crude production fell by 4.5% on the month to 1.47mn b/d in February, according to NUPRC. However, the introduction of new crude grades like Obodo is expected to attract more investment and boost production.
The Obodo crude grade is expected to find favor with European refineries, where seasonal maintenance is scheduled to wind down by the end of April and early May. Nigerian medium sweets, including Forcados, Escravos, and Bonga, have predominantly found an outlet in Europe, and Obodo is likely to follow suit.
