Nigeria Expands Crude Oil Supply to Europe with New Obodo Blend

Nigeria is set to introduce a new crude oil grade, medium sweet Obodo, to the global market in April 2025, further expanding its crude offerings. The move comes as part of the country’s efforts to boost production and compete in the European market, Argus Media reports.

Key Details on Obodo Crude

API Gravity: 27.65° (medium sweet crude)
Sulphur Content: 0.05%
Production: Continental Oil & Gas (onshore OML 150 in the Niger Delta)
Marketing: NNPC (Nigerian National Petroleum Corporation)
Price Benchmark: Likely to be priced in line with Bonga crude

This new addition follows the recent launches of Nembe (2023) and Utapate (2024), reinforcing Nigeria’s presence in the European crude market. However, demand for Nigerian crude has been weak in recent months due to the availability of cheaper alternatives like US WTI, Caspian CPC Blend, and Mediterranean grades.

Nigeria’s Oil Production and Market Challenges

Despite the introduction of new crude grades, Nigeria has struggled to meet production targets, falling 4.5% to 1.47 million barrels per day (bpd) in February 2025, just under its OPEC+ quota of 1.5 million bpd. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) aims to add 1.07 million bpd by December 2026 through:

Joint ventures
Production-sharing contracts
Sole risk contracts

Dangote Refinery Updates

Nigeria’s 650,000 bpd Dangote Refinery, a key player in local refining, is commissioning its alkylation unit, which will allow it to fully operate its Crude Distillation Unit (CDU) by April 2025.

Current CDU capacity: 550,000 bpd, though actual processing is lower
Crude arrivals in March: 175,000–235,000 bpd (down from 405,000 bpd in February)
Alkylation unit: 27,000 bpd capacity, crucial for high-octane gasoline blending

The refinery’s lower output suggests a drop in gasoline production, increasing Nigeria’s fuel imports to 345,000 tons in March—up from 245,000 tons in February.

Port Harcourt Refinery Resumes Crude Allocations

Nigeria’s 210,000 bpd Port Harcourt Refinery is receiving crude shipments again after experiencing disruptions in February and March.

April-May crude allocation: 950,000 barrels (April 5-6), plus two 475,000 barrels shipments (April 22-23 & May 1-2)
Crude type: Bonny Light (domestic light sweet crude)
Issue resolved: Fire on Trans Niger Pipeline (TNP) briefly disrupted operations but was restored by March 19

With rehabilitation work completed on one of its two refining units (60,000 bpd), the Port Harcourt Refinery is expected to improve Nigeria’s refined product supply.