Nigeria is set to launch a new crude oil grade, Obodo, in April, targeting European refineries. This addition to the country’s medium sweet crude lineup—alongside Forcados, Escravos, and Bonga—aims to enhance Nigeria’s position in the global oil market.
As Obodo ramps up operations after seasonal maintenance in late April and early May, it is anticipated to draw European refiners, a crucial market for Nigerian oil exports. Obodo’s introduction is strategically significant since European consumers are progressively choosing less expensive options like U.S. WTI, Caspian CPC Blend, and other Mediterranean grades.
The new grade will be produced by Nigerian independent oil company, Continental Oil & Gas, from an onshore license in the Niger Delta. Marketing responsibilities will be handled by the Nigerian National Petroleum Company (NNPC), the state-owned oil giant.
Although Obodo’s price is expected to be comparable to Bonga’s, production volume information has not yet been made public. This move is in line with Nigeria’s overarching objective of using joint ventures, production-sharing agreements, and sole risk contracts to increase its output of crude oil and liquids by 1.07 million barrels per day (bpd) by December 2026.
