₦airaland Forum

A new Nigerian crude grade, medium sweet Obodo, is set to enter the market in April, The PUNCH has learned.

According to Argus Media on Thursday, an independent energy and commodity price benchmarks provider, sources familiar with the development revealed that Nigeria is steadily expanding its crude portfolio.

An assay reviewed by Argus indicates that Obodo has a gravity of 27.65°API and a sulphur content of 0.05pc.

It was said that the grade is likely to be priced in line with Nigerian medium sweet Bonga, though details on production levels were not immediately available.

Nigerian independent Continental Oil & Gas will produce Obodo from onshore oil block OML 150 in the Niger Delta region, and state-owned NNPC will market the crude, according to two sources.

Data from the Nigerian Upstream Petroleum Regulatory Commission shows Continental Oil has a stake in OML 150 under a production-sharing contract — typically between the government and a private company.

The newest Nigerian crude will add to the country’s growing supply of medium-sweet grades.


Recall that the Nigerian National Petroleum Company Limited restarted production of similar-quality Utapate in 2024, which followed the launch of Nembe in 2023.


Nigerian medium sweets, including Forcados, Escravos, and Bonga, have predominantly found an outlet in Europe — the largest market for Nigerian crude.

Obodo could also find favour with European refineries, where seasonal maintenance is scheduled to wind down by the end of April and early May.

It was reported that Nigerian grades have faced tepid demand in the April trade cycle as ample availability of lower-priced alternatives such as US WTI, Caspian CPC Blend, and other Mediterranean grades enticed European buyers.

The trade cycle has since shifted to May, with as many as 15 April-loading Nigerian cargoes still looking for buyers, according to market participants.

Nigeria’s upstream regulator NUPRC in March outlined a plan to add 1.07mn b/d to the country’s liquids output by December 2026.

The plan forecasts an injection of capital into Nigerian oil blocks through joint ventures, production-sharing contracts, and sole risk contracts.


Nigeria has struggled to mobilise upstream investment and has consistently fallen short of less ambitious production growth targets in recent years.

The country’s crude production fell by 4.5 per cent on the month to 1.47mn b/d in February, according to NUPRC — just under its OPEC+ quota of 1.5mn b/d.

Dotherightthing:
First time OP will post good news

Breaker001:
Good news for the petroleum market

Ibusho:
The Federal Government on Friday received a $2.25b foreign exchange support facility from the African Import-Export Bank.

The Minister of Finance, Wale Edun, confirmed this to Arise TV, said it is the first tranche of the $3.3bn facility from the bank. He noted that the loan was aimed at resolving the acute FX shortage that has hampered the economy.

According to the report monitored by our correspondent, the balance of $1.05bn will be received in the first week of January.

Edun stated that work has commenced for solutions to Nigeria’s economic challenges.

In August, the Nigerian National Petroleum Company Limited announced that it had secured a $3bn emergency loan from the Afrexim Bank to stabilise the country’s volatile foreign exchange market.

https://punchng.com/fg-receives-2-25bn-afrexim-bank-loan/

anonimi:
The crude has been [b]mortgaged by those who promised not to borrow because they removed subsidy

Dotherightthing:
First time OP will post good news

An assay reviewed by Argus indicates that Obodo has a gravity of 27.65°API and a sulphur content of 0.05pc.