A new Nigerian crude grade, Obodo, is set to enter the market in April. Obodo is a medium sweet crude with an API gravity of 27.65° and a sulfur content of 0.05%. It is expected to be priced similarly to Nigeria’s medium sweet Bonga grade, although production details remain unclear.
The crude will be produced by Nigerian independent company, Continental Oil & Gas, from the onshore oil block OML 150 in the Niger Delta, with the state-owned NNPC handling its marketing. Continental Oil holds a stake in OML 150 under a production-sharing contract.
This addition increases Nigeria’s growing supply of medium-sweet crude grades. In recent years, Nigeria has seen the return of similar-quality crudes like Utapate, which restarted in 2024, and the launch of Nembe in 2023.
Nigerian medium-sweet crudes, including Forcados, Escravos, and Bonga, are primarily sold to European refineries. Obodo may also appeal to European buyers as seasonal maintenance in refineries is expected to conclude by late April or early May.
However, Nigerian crude grades have faced weaker demand in the April trade cycle, with European buyers opting for lower-priced alternatives like US WTI, Caspian CPC Blend, and Mediterranean crudes. By the start of May, several April-loading Nigerian cargoes remain unsold.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has outlined plans to boost the country’s crude output by 1.07 million barrels per day by December 2026, through joint ventures, production-sharing contracts, and sole risk contracts. Nigeria’s crude production fell by 4.5% in February, reaching 1.47 million b/d, just below its OPEC+ quota of 1.5 million b/d.
