By Peter Onyekachukwu 
By Peter Onyekachukwu, Warri
DELTA: Nigeria is set to introduce a new crude oil grade, named ‘Obodo,’ into the global market by April, as part of efforts to expand its petroleum portfolio and enhance foreign exchange earnings.
The medium-sweet crude, with a gravity of 27.65° API and a sulfur content of 0.05 percent, is expected to compete with existing Nigerian grades like Bonga, Forcados, and Escravos, which have traditionally been in high demand among European refineries.
A senior official in the Nigerian National Petroleum Company Limited (NNPC), who spoke on condition of anonymity, confirmed the development, stating, “This is part of our broader strategy to maximize production from existing assets while introducing new, high-value crude grades that meet international refining standards.”
The crude will be produced by Nigerian independent firm, Continental Oil & Gas, from Oil Mining Lease (OML) 150 in the Niger Delta. The NNPC will be responsible for marketing it to potential buyers.
Industry analysts believe Obodo could attract European refineries, especially as maintenance shutdowns end by late April. However, they caution that global competition remains stiff, particularly with the influx of cheaper alternatives like U.S. West Texas Intermediate (WTI) and Caspian CPC Blend.
A Lagos-based oil and gas consultant, Dr. Gabriel Okechukwu, noted, “Nigeria must ensure competitive pricing and address security concerns in the Niger Delta to sustain investor confidence. Expanding crude grades is a good step, but meeting production targets is even more critical.”
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently projected an increase of 1.07 million barrels per day in the country’s output by 2026, emphasizing the need for fresh investments in joint ventures and production-sharing contracts.
Despite these efforts, Nigeria has struggled with crude production deficits. NUPRC data shows that output declined by 4.5 percent to 1.47 million barrels per day in February, falling short of the country’s OPEC+ quota of 1.5 million barrels per day.
Industry stakeholders are now watching closely to see if the introduction of Obodo will help boost Nigeria’s crude exports and stabilize production amid persistent operational and investment challenges.