Nigeria is set to introduce a new crude oil grade called Obodo, which will begin exports in April. This move adds to the country’s growing list of medium sweet crude grades, which are mainly supplied to European markets.
New Crude Grade: Obodo
Obodo is a medium sweet crude with a 27.65° API gravity and 0.05% sulphur content. Sources say its price will likely match Bonga crude, another Nigerian grade. Continental Oil & Gas, an independent oil company, will produce Obodo from onshore oil block OML 150 in the Niger Delta, while the Nigerian National Petroleum Company (NNPCL) will handle marketing.
Europe’s Demand and Competition
Nigeria’s medium sweet crude grades Forcados, Escravos, and Bonga are popular in Europe. Obodo is expected to attract European refineries, which will complete seasonal maintenance by April and May. However, demand for Nigerian crude has been weak recently due to cheaper alternatives like US WTI, Caspian CPC Blend, and Mediterranean grades.
Nigeria’s Plan to Boost Oil Production
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has set a target to increase the country’s crude output by 1.07 million barrels per day (bpd) by December 2026. The plan aims to bring in more investment through joint ventures, production-sharing contracts, and sole risk agreements.
Despite these efforts, Nigeria has struggled to meet its production goals. In February 2025, crude production dropped by 4.5% to 1.47 million bpd, slightly below its OPEC+ quota of 1.5 million bpd.
Dangote Refinery Set to Reach Full Capacity
The 650,000 bpd Dangote refinery is expected to hit full capacity in April as it completes the commissioning of its alkylation unit. This unit will allow the refinery to operate its Crude Distillation Unit (CDU) at full strength, boosting the production of petrol blending components.
So far in March 2025, crude oil deliveries to the refinery have dropped to 175,000-235,000 bpd, compared to 405,000 bpd in February. The decline in processing suggests a possible drop in petrol output, at a time when Nigeria’s petrol imports have risen to 345,000 tons this month, up from 245,000 tons in February.
Port Harcourt Refinery Receives Crude Supply
The 210,000 bpd Port Harcourt refinery will receive three shipments of Bonny Light crude between April and May. These include:
- 950,000 barrels on April 5-6
- 475,000 barrels on April 22-23
- 475,000 barrels on May 1-2
This comes after reported delays in February and March, possibly due to operational issues. A source revealed that a 475,000-barrel shipment was delayed due to a fire at the Trans Niger Pipeline (TNP). However, the new operators of the pipeline, Renaissance Africa Consortium, restored oil flows on March 19.
The Port Harcourt refinery, which resumed operations in late 2024, has only one of its two sections running. The total Bonny Light crude loadings for April have been revised to 209,000 bpd, while May’s loadings are set at 202,000 bpd.
These developments show Nigeria’s efforts to strengthen its crude oil exports while improving local refining capacity.
