Nigeria Discovers New Crude Oil Blend, Exports Commodity to Europe, Dangote to Import 122m Barrels
- The Nigerian National Petroleum Company Limited is set to export Nigeria’s newest crude oil grade to Europe
- The sweet Obodo blend will reportedly hit the European market in April, where Nigeria sells most of its crude
- Reports say the sweet Obodo blend will be produced by Nigerian Independent Continental Oil and Gas from the onshore oil block OML 150
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigeria’s newest crude oil blend, the medium-sweet Obodo grade, will hit the market in April.
The new blend has a gravity of 27.65 API and a sulphur content of 0.05pc, Argus Media reports.
Source: Getty Images
Nigeria’s newest crude blend to hit markets
Sources say the new grade may be priced alongside the Nigerian medium-sweet Bonga blend.
According to the report, Nigerian Independent Continental Oil and Gas will produce Obodo from onshore oil block OML 150 in the Niger Delta area, while the Nigerian National Petroleum Company Limited (NNPC) will market the commodity.
The newest Nigerian crude will add to the growing list of medium-sweet grades.
The state oil firm restarted the production of a similar Utapate blend last year after it was launched in Nembe in 2023.
Nigeria's medium-sweet blends, such as Forcados, Escravos, and Bonga, have been accepted in Europe, the largest market for Nigerian crude.
Experts say Obodo could also be accepted with European refineries, where seasonal maintenance is expected to end by April and May.
Nigeria's crude faces slow acceptance in Europe
They say Nigerian crude faced slow acceptance in the April trade cycle as the availability of cheaper alternatives, such as US WTI, Caspian CPC Blend and other Mediterranean grades, lured European buyers.
The trade cycle has reportedly shifted to May, with 15 April loading Nigerian cargoes still searching for buyers.
ThisDay reports that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) outlined plans to add 1.07 million barrels per day to Nigeria’s output by December next year.
The plan projects an increase in capital in Nigerian oil blocks via joint ventures and production-sharing contracts.
Dangote Refinery insists on crude oil imports
The development comes as Dangote and other modular refineries in Nigeria may spend about $8.56 billion to import about 122,400,000 barrels of crude oil in six months to operate at full capacity.
The development means that the refineries may spend about $1.43 billion monthly on crude imports into Nigeria amid the collapse of the naira-for-crude deal between the refineries and the Nigerian government.
The mega Dangote Refinery may spend the amount over the uncertainty surrounding the Domestic Crude Supply Obligation of the Nigerian government.
Legit.ng earlier reported that the naira-for-crude oil committee failed to meet on Monday, March 24, 2025, with other stakeholders to discuss the future of the deal.
The 650,000 bpd-capacity refinery has repeatedly disclosed that it was importing crude and would continue to do so as it hopes to ramp up production.
Edo Refinery begins talks to buy crude
Experts have said that with the collapse of the naira-for-crude deal, the refinery will rely more on imported crude to meet its production needs.
Punch reports that Edo Refinery plans to import crude to meet its refining needs.
The 30,000 bpd-capacity refinery has sought to purchase crude from a US-based crude seller.
Dangote and Edo refineries to buy 122.4mb
Findings show that while other modular refineries were planning to purchase crude, the Dangote and Edo refineries would need about 680,000 barrels per day to operate optimally.
The figure translates to 20.4 million barrels in 30 days and 122.4 million barrels in six months.
Source: Getty Images
At the average cost of $70 per barrel for Brent crude, the two facilities may spend about $8.56 billion in six months to import the commodity.
Marketers threaten to sell fuel in dollars
Legit.ng earlier reported that petroleum oil marketers have adjusted their pump prices amid ongoing disagreement between the Nigerian National Petroleum Company Limited (NNPC) and the Dangote Refinery over the sale of crude in naira.
Legit.ng reported that the price adjustments came as private depot owners increased their prices from N850 per litre to N878.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to begin the sale of petrol in dollars if the Dangote Refinery starts selling its products in foreign currency.
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Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
Kola Muhammed (Copyeditor) Kola Muhammed is an experienced editor and content strategist who has overseen content and public relations strategies for some of the biggest (media) brands in Sub-Saharan Africa. He has over 10 years of experience in writing and (copy)editing.
