Lagos, March 28, 2025 – Nigeria is to add a new type of crude oil, Obodo semisweet, to the market in April.
This comes as the country steadily works on increasing its crude oil supply.
According to American Mud Pumps Incorporated on Thursday, Obodo has an API gravity of 27.65° and a sulfur content of 0.05%, which is favorable for refining.
Obodo will add to Nigeria’s growing supply of medium-sweet crudes, such as Forcados, Escravos, and Bonga. These crudes have found strong demand in Europe, Nigeria’s main export market.
Obodo could also be in demand at European refineries, especially after maintenance ends in late April or early May.
Argus reported that sources suggest the price of this new crude will likely be similar to Nigeria’s Bonga semisweet.
However, the exact production levels of Obodo have not yet been disclosed.
The crude will be produced by Continental Oil & Gas, a Nigerian independent company, in the OML 150 oil block, located in the Niger Delta.
The state-owned NNPC will handle the sale and distribution of Obodo. Continental Oil & Gas operates in OML 150 under a production-sharing agreement with the government.
Despite some challenges, Nigerian crude experienced slower demand during the April trading period as cheaper alternatives like US WTI and other Mediterranean crudes attracted European buyers.
However, the focus has now shifted to May, with 15 Nigerian April cargoes still looking for buyers.
Nigeria’s oil regulator has a plan to increase production by 1.07 million barrels per day by 2026. This plan includes investments in oil blocks through joint ventures and contracts.
In spite these efforts, Nigeria has faced difficulties in attracting investment, and its oil production has not met targets.
