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Nigeria’s NNPC puts out tender for bids on new Cawthorne oil grade - REUTERS
LONDON (Reuters) — Nigeria's state-owned oil company, NNPC Limited, has invited bids for the sale of its newly introduced Cawthorne crude oil grade as part of efforts to expand the country's export portfolio and boost production.
According to a tender document seen by Reuters, the company is offering 950,000 barrels of the light sweet Cawthorne crude for loading on a Free-on-Board (FOB) basis between July 10 and July 11.
New Export Grade Gains Momentum
The Cawthorne crude grade began exports in March and has gradually established a presence in international markets.
Data from energy analytics firm Kpler show that exports averaged approximately 42,000 barrels per day (bpd) during April and May, reflecting growing market acceptance of the new blend.
The launch forms part of Nigeria's broader strategy to diversify its crude oil export offerings and attract a wider range of international buyers.
Production Growth Strategy
NNPC is seeking to increase crude oil production as Nigeria works to reverse years of declining output caused by:
- Underinvestment in upstream oil infrastructure.
- Crude oil theft and pipeline vandalism.
- Operational disruptions across key production assets.
The introduction of Cawthorne follows the recent addition of other export grades, including:
- Nembe
- Utapate
These new blends are intended to strengthen Nigeria's position in the global crude market by offering buyers a broader range of high-quality, light sweet crude oils.
Market Conditions Remain Challenging
Despite the introduction of new export grades, Nigeria faces a more competitive market environment.
West African crude prices have come under pressure as oil flows through the Strait of Hormuz continue to recover following recent geopolitical developments in the Middle East.
The gradual restoration of exports from Gulf producers has increased global crude supply, intensifying competition among light sweet crude exporters, including Nigeria.
Greater availability of alternative crude grades may weigh on pricing and demand for West African cargoes in the near term.
