Nigeria expands oil portfolio with launch of Cawthorne crude exports

Nigerian National Petroleum Company is set to begin exporting a new light, sweet crude grade known as Cawthorne in March, marking another step in Nigeria’s push to consolidate output recovery and strengthen its standing within Organization of the Petroleum Exporting Countries and the broader OPEC+ alliance.

The first cargo of Cawthorne is scheduled for export in the third week of March, according to industry sources, with loading dates expected around March 24 to 25 following a tender issued by NNPC. The development signals renewed momentum for Africa’s largest oil producer as it works to stabilize production levels after years of disruptions caused by theft, pipeline vandalism, and underinvestment.

Cawthorne is classified as a light, sweet crude with an API gravity of 36.4, placing it within a quality range comparable to Bonny Light, one of Nigeria’s most established and internationally recognized export grades. The new grade carries a sulfur content of approximately 0.14 percent, significantly below the 0.5 percent threshold commonly associated with sweet crudes. Low sulfur levels reduce refining costs, limit equipment corrosion, and lower environmental impact during processing, attributes that typically make such grades attractive to international refiners.

The crude will be exported via the Floating Storage and Offloading vessel Cawthorne, which has a storage capacity of 2.2 million barrels. The vessel is expected to facilitate production and transportation from Oil Mining Lease 18 and surrounding assets in the eastern Niger Delta, an area that has historically played a central role in Nigeria’s upstream operations.

Industry analysts suggest that the introduction of Cawthorne could lift Nigeria’s crude and condensate output from approximately 1.65 million barrels per day to around 1.7 million barrels per day for the remainder of the year, provided operational stability is maintained and export demand remains steady. This incremental increase, while modest, is strategically significant given Nigeria’s ongoing negotiations within OPEC+ over production baselines and quotas.

Nigeria’s current OPEC+ crude production quota stands at 1.5 million barrels per day. According to recent OPEC data, the country produced about 1.48 million barrels per day in January, placing it just below its formal cap. By introducing additional grades such as Cawthorne, Nigeria is signaling both capacity recovery and readiness to argue for higher production targets within the alliance framework.

The launch of Cawthorne follows the rollout of two other new grades in recent years. Utapate was introduced in 2024, followed by Obodo in 2025. Together, these additions reflect a broader strategy to diversify Nigeria’s crude slate, optimize production streams from different fields, and enhance flexibility in meeting varied refinery specifications across global markets.

Nigeria’s crude portfolio has long included well known grades such as Bonny Light, Forcados, and Qua Iboe, each with distinct quality characteristics. Expanding this portfolio allows NNPC and its joint venture partners to better align production with evolving global demand patterns, particularly in Europe and Asia where refiners often seek low sulfur feedstock to meet tightening environmental standards.

Nigeria expands oil portfolio with launch of Cawthorne crude exports

The timing of Cawthorne’s launch is also notable in the context of shifting global energy dynamics. With supply disruptions in certain regions and ongoing geopolitical tensions influencing trade flows, buyers are actively seeking reliable alternative sources. Light, sweet crudes typically command competitive pricing because of their refining advantages, potentially offering Nigeria improved revenue streams if market conditions remain favorable.

However, sustaining output growth will depend on continued improvements in security and infrastructure. Nigeria has made progress in curbing crude theft and rehabilitating key pipelines, but operational risks persist in parts of the Niger Delta. Stable production from Oil Mining Lease 18 and adjacent assets will be critical to ensuring that Cawthorne deliveries remain consistent.

Beyond immediate production gains, the introduction of new grades strengthens Nigeria’s negotiating leverage within OPEC+. By demonstrating credible recovery and incremental growth potential, the country may bolster its case for adjustments to its production baseline in future quota discussions.

As exports of Cawthorne commence next month, international traders and refiners will be closely watching pricing differentials, cargo reception, and long term output consistency. For Nigeria, the new grade represents more than an additional stream of barrels. It is part of a broader effort to rebuild confidence in its oil sector, stabilize revenues, and reaffirm its role as a key supplier in global energy markets.

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