Conoil Exports Nigeria’s Newest Crude Grade, Obodo Blend

Conoil has launched exports of Nigeria’s latest crude oil grade, the Obodo blend. The Obodo crude exports occurred following Conoil’s unveiling of the blend in April.

Destined for Germany’s Wilhelmshaven terminal, Conoil produced and exported the Obodo blend under a Production Sharing Contract with the Nigerian National Petroleum Company Limited.

The introduction of the Obodo crude blend aligns with the federal government’s objectives to enhance production output and maximize hydrocarbon resources.

Conoil’s Obodo Crude Blend

An assay examined by Argus Media puts Obodo’s gravity at 27.65° API with a 0.05% sulphur content. Thus, Obodo is a medium-sweet crude comparable to the Bonga grade.

Such specifications make Obodo attractive to European refineries, favouring Nigerian medium-sweet streams like Bonga, Escravos, and Forcados,

It is extracted from Oil Mining Lease (OML) 150, located in Nigeria’s oil-rich Niger Delta. It has reserves of 400 million barrels of oil and 1.8 trillion cubic feet of gas.

Continental Oil & Gas Limited, an arm of Conoil Producing, oversees this block as part of its broader portfolio of six oil blocks across the Niger Delta.

The project operates under a Production Sharing Contract between Continental Oil and Gas and NNPC Limited.

Oando Trading, the trading division of the Oando Group, facilitated the inaugural purchase and export of Obodo crude blend.

Oando’s vessel, the Atlantic Spirit, executed the maiden offtake under Century Ports and Terminals’ supervision via the FPSO Tamara Tokoni, marking Obodo crude’s international debut.

Conoil’s oil marketing division continues to grow. According to its Unaudited Financial Statement for 2024, Conoil’s oil marketing arm’s revenue surged from N201.4 billion ($125.3 million) in 2023 to N323.2 billion ($201 million) in 2024. Profits also climbed from N9.9 billion ($6.15 million) to N11.4 billion ($7.1 million).

Implications for Nigeria’s Energy Outlook

According to Nigeria’s upstream regulator, the Nigerian Upstream Petroleum Regulatory Commission, the country’s daily output in April rose to 1.683 million barrels, up from 1.603 million recorded in March.

This was partially due to higher light crude shipments and resumed outputs from fields like Nembe and Utapate.

Therefore, Obodo’s addition would expand overall volumes and provide fresh revenue streams for the government. As Obodo’s first cargo departs, Nigeria’s upstream sector is at a crossroads as the global energy market becomes increasingly competitive.

Nigeria’s introduction of Obodo crude grade will strengthen its negotiating power with European and Asian buyers regarding official selling prices.

Due to its medium sweet profile, the Obodo blend gives Nigeria an edge over similar offerings such as the US WTI and Russia’s CPC Blend.