Oil earnings to increase as Nigeria launches new grade to Europe

Agency Report

A new crude oil grade, Obodo, from Nigeria is expected to hit oil market in April and cater primarily to the European market.

This latest addition to Nigeria’s medium sweet crude grades—joining Forcados, Escravos, and Bonga—marks another step in the country’s ongoing efforts to expand its crude earnings.

Obodo is expected to appeal to European refineries, the largest destination for Nigerian crude exports.

According to Argus, European refineries are preparing to ramp up operations as seasonal maintenance winds down by the end of April and early May when European buyers have increasingly turned to lower-priced alternatives, such as US WTI, Caspian CPC Blend, and other Mediterranean grades.

Continental Oil & Gas, a Nigerian independent, will produce Obodo from an onshore oil license in the Niger Delta, while the Nigerian National Petroleum Company (NNPC), the state-owned oil giant, is expected to handle the marketing of the crude.

Although the grade is anticipated to be priced similarly to Bonga, specifics on production volumes have yet to be disclosed, according to Argus.

Nigeria plans to increase liquids output by 1.07 million barrels per day (bpd) by December 2026, through joint ventures, production-sharing contracts, and sole risk contracts.