In Boost for Oil Output, NNPC Set to Begin Export of New Crude Grade in March

•  Dangote reiterates commitment to 65m litres daily domestic petrol supply

Emmanuel Addeh in Abuja, Sunday Ehigiator and Peter Uzoho in Lagos

The Nigerian National Petroleum Company Limited (NNPC Ltd) will begin exporting a new light, sweet crude grade called Cawthorne from March, Reuters quoted a  spokesperson for the organisation as saying, adding to a recent recovery in output from Africa’s top exporter.

The launch is part of Nigeria’s broader push to lift production, long constrained by unrest and crude theft, and follows the introduction of two other new grades since 2024. Nigeria, already pumping close to its Organisation of Petroleum Exporting Countries (OPEC) quota, is among the countries seeking a higher target within the producer group.

Cawthorne crude, which is due to be exported in the third week of March according to a source familiar with the matter, has an American Petroleum Institute (API) gravity of 36.4, making it similar in quality to Nigeria’s Bonny Light, valued for its high yields of petrol and diesel.

The Reuters report said the NNPC last week issued a tender for the grade for March 24-25, quoting a trader.

The grade is expected to be exported through the Floating Storage and Offloading (FSO) vessel Cawthorne, analysts at Kpler said in a note. The FSO has a capacity of 2.2 million barrels and aims to boost crude oil transportation and production from Oil Mining Lease 18 and surrounding assets in the country’s Eastern Niger Delta.

Based on the vessel’s storage constraints, Cawthorne could lift Nigeria’s crude and condensate supply from roughly 1.65 million barrels per day currently to around 1.7 million bpd for the rest of the year, Kpler said.

Nigeria’s OPEC+ crude output quota is 1.5 million bpd and the country pumped 1.48 million bpd in January, based on OPEC data. Other grades Nigeria has launched in recent years include Obodo in 2025 and Utapate in 2024, Reuters recalled.

Meanwhile, in a major shift for Nigeria’s downstream petroleum sector, the Dangote Petroleum Refinery & Petrochemicals has reiterated its commitment to supplying between 60 and 65 million litres of petrol daily to meet national demand, effectively positioning the country for sustained fuel self-sufficiency while exporting a surplus of up to 20 million litres.

This, according to a statement from the company, followed a ramp-up of production, which has left the refinery producing much more than national consumption with rest to be exported to other countries already angling for partnership with the facility .

President of Dangote Group, Aliko Dangote, disclosed the development in Lagos, confirming that a structured offtake agreement has been concluded with selected marketers to ensure nationwide distribution and eliminate supply instability.

“We have agreed an offtake framework to supply up to 65 million litres daily for the domestic market,” Dangote said. “Any surplus, estimated at between 15 and 20 million litres, will be exported,” he added.

Nigeria’s average daily petrol consumption stands at between 50 and 60 million litres. The refinery’s output therefore exceeds current domestic requirements, marking a decisive break from decades of fuel import dependence and recurrent scarcity.

The structured model is designed to eliminate supply bottlenecks and curb speculative practices that have historically triggered disruptions.

With local refining now exceeding national demand, the country stands to conserve billions of dollars annually in foreign exchange previously spent on petrol imports. It is believed that this could help ease pressure on the naira, strengthen external reserves and improve trade balance stability.

The Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, had during a recent visit to the facility described the refinery as a transformative national asset capable of redefining Nigeria’s energy security architecture and accelerating industrial growth.

He described the refinery as a source of national pride and an example of Nigeria’s ability to leapfrog legacy industrial constraints through the adoption of best-in-class global technology.

Commending its operational performance, Ojulari said the plant had exceeded expectations.

“This plant was designed for 650,000 barrels per day. None of us thought it would even touch 550,000. What we saw live today was 661,000. These are live parameters, not reports or photographs,” he stated.