NNPC Unveils Cawthorne Crude Export To Boost Nigeria’s Oil Output

…Targets 50,000 additional daily output

The Nigerian National Petroleum Company Limited (NNPC) will begin exporting a new light, sweet crude grade named Cawthorne Channel in the third week of March, marking a key step in the country’s efforts to ramp up oil production amid a recent rebound from longstanding challenges like militancy, pipeline vandalism, and crude oil theft.

This launch builds on Nigeria’s aggressive strategy to expand its crude portfolio and lift output, which has been hampered for years by security issues in the Niger Delta and ageing infrastructure.

It follows the successful introduction of two other new grades in 2024: Utapate in late 2024 and Obodo earlier in 2025. With these additions, Nigeria aims to attract more international buyers by offering diverse, high-quality streams tailored to global refinery needs.

The NNPC had last week issued a tender for the grade for March 24-25, a trader told Reuters.

Cawthorne Channel crude boasts an API gravity of 36.4 degrees, placing it in the same premium category as Nigeria’s flagship Bonny Light grade.

This quality profile—light and low in sulfur—makes it highly desirable to refiners, yielding generous volumes of valuable products such as gasoline, diesel, and jet fuel. According to Reuters, which cited unnamed sources familiar with the matter, the first cargoes are slated for loading around March 24-25.

The new grade will be exported via the Floating Storage and Offloading (FSO) vessel Cawthorne Channel, which has a storage capacity of 2.2 million barrels. Analysts at energy tracking firm Kpler noted in a recent report that the vessel is positioned off Oil Mining Lease 18 (OML 18) and surrounding assets in Nigeria’s Eastern Niger Delta. “This development should enhance crude evacuation from the area, addressing bottlenecks that have long plagued production,” Kpler stated, projecting a modest uptick in national supply. Kpler estimates that, given the FSO’s constraints, Cawthorne Channel could help elevate Nigeria’s combined crude and condensate output from the current 1.65 million barrels per day (bpd) to approximately 1.7 million bpd through the remainder of 2026.

This comes as Nigeria operates near its OPEC+ quota of 1.5 million bpd for crude alone; the country produced 1.48 million bpd in January, per OPEC’s latest secondary source data, reflecting a gradual recovery from lows below 1.4 million bpd in late 2025.

Nigeria, Africa’s largest oil producer, has been vocal within OPEC+ about seeking a higher quota to align with its proven reserves of over 40 billion barrels. Officials argue that persistent underproduction—often 20-30 per cent below capacity due to theft and sabotage—undermines revenue needed for economic reforms and energy transition investments.

The new grades like Cawthorne are expected to generate additional forex inflows, supporting the naira’s stability and funding power sector upgrades. Industry watchers remain cautiously optimistic. “While new streams signal progress, sustained gains depend on tackling theft, which siphons off up to 200,000 bpd, and improving joint venture cash calls,” said a Lagos-based oil analyst. NNPC has not yet commented publicly on the launch, but the move aligns with President Bola Tinubu’s administration’s push for deregulation and private investment in upstream assets.

As global oil prices hover around $80 per barrel amid geopolitical tensions, Cawthorne’s debut could position Nigeria to capture more market share from rivals such as Angola and Libya, both grappling with output hurdles.