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Nigeria to Introduce New Crude Grade in March to Boost Output

byTimothy Banjoko
February 25, 2026
in Business
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Nigeria’s oil exports drop by N3.18trn, but non-oil trade cushions the blow
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Nigeria will commence exports of a new light, sweet crude grade known as Cawthorne in March, in a move aimed at strengthening oil output and reinforcing the country’s standing within the Organisation of the Petroleum Exporting Countries.

The NNPC Limited confirmed the development in Abuja, noting that the first export cargo is expected in the third week of March. The new grade forms part of broader efforts to stabilise and expand crude production following years of disruptions linked to oil theft, pipeline vandalism and insecurity in the Niger Delta.

Cawthorne crude has an API gravity of 36.4, placing it in the same quality range as Bonny Light, one of Nigeria’s most sought-after export grades. Refiners typically favour light, sweet crudes for their high gasoline and diesel yields. The national oil company has already issued a tender for cargoes scheduled for loading between March 24 and 25, signalling readiness for commercial export.

Industry analysts say the new stream will be exported via the Floating Storage and Offloading vessel Cawthorne, which has a storage capacity of about 2.2 million barrels. The facility supports production from Oil Mining Lease 18 and nearby assets in the eastern Niger Delta, improving evacuation and operational efficiency.

The introduction of Cawthorne could push Nigeria’s crude and condensate supply from approximately 1.65 million barrels per day to about 1.7 million barrels per day, depending on operational stability and global demand conditions.

Nigeria’s oil production improves in January

Under the OPEC+ production framework, Nigeria’s crude quota currently stands at 1.5 million barrels per day. Recent data from the cartel showed output at about 1.48 million barrels per day in January, reflecting a gradual recovery after years of underperformance.

Security enhancements across key oil infrastructure have played a central role in the rebound. Authorities have intensified surveillance and enforcement measures around pipelines and export terminals, reducing losses and improving production consistency.

Cawthorne is the third new crude grade introduced in recent years, following the launch of Obodo in 2025 and Utapate in 2024. Industry observers note that diversifying crude grades allows Nigeria to target different refiner requirements, enhance pricing flexibility and strengthen its competitive position in the global oil market.

As Africa’s largest oil producer, Nigeria is pursuing reforms in the energy sector under President Bola Tinubu, focusing on attracting investment, boosting upstream activity and increasing government revenue. Oil production had previously declined due to operational challenges and divestments by international oil companies. However, improved upstream operations and stronger pipeline security are helping restore output.

Sustained growth in production, alongside the rollout of additional crude grades, is expected to support export earnings at a time when global oil prices remain volatile but relatively supportive for energy-exporting nations.

Tags: Crude Oil ExportsNigeria oilNNPC
Timothy Banjoko

Timothy Banjoko

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