NNPC Launches Cawthorne Crude Grade to Boost Production
The Nigerian National Petroleum Company (NNPC) Limited has announced the introduction of a new light, sweet crude grade, named Cawthorne, with exports scheduled to commence in March 2026.
This launch marks a significant milestone in Nigeria’s ongoing efforts to revitalize its upstream petroleum sector and capitalize on its vast hydrocarbon reserves.
The addition of Cawthorne crude is expected to provide a substantial lift to the nation’s daily output, further solidifying Nigeria’s position as Africa’s leading oil exporter during a period of critical fiscal restructuring.
Spokespersons for the state oil firm confirmed that the Cawthorne grade will begin its export cycle in the third week of March.
This development follows the successful introduction of other new grades, such as Utapate in 2024 and Obodo in 2025, signaling a sustained trend of expansion in the Niger Delta’s production capacity.
For years, Nigeria’s output has been hampered by technical challenges, crude oil theft, and localized unrest, but the consistent rollout of new streams suggests a tightening of security and improved infrastructure management within the Eastern Niger Delta operations.
Technically, Cawthorne crude is characterized by an API gravity of 36.4, placing it in the same premium category as Nigeria’s flagship Bonny Light.
Light, sweet grades are highly sought after by global refiners due to their low sulfur content and high yields of middle distillates, specifically gasoline and diesel. Market traders have already noted that the NNPC has issued tenders for the first parcels of this grade, scheduled for loading between March 24 and March 25.
The high quality of the crude ensures that it will likely trade at a premium to the Brent benchmark, providing much-needed foreign exchange revenue for the federal government.
The production of this new grade is centered around Oil Mining Lease (OML) 18 and surrounding assets. To facilitate efficient logistics and export, the project utilizes the Floating Storage and Offloading (FSO) vessel Cawthorne.
This vessel boasts a storage capacity of 2.2 million barrels, acting as a critical hub for gathering and transporting crude from offshore and swamp assets in the Eastern Delta.
Analysts from the data intelligence firm Kpler indicate that the operationalization of the FSO Cawthorne is a strategic move to bypass traditional pipeline vulnerabilities, which have historically been the primary targets for sabotage and illegal siphoning.
The volume of Cawthorne exports is expected to have a tangible impact on national production figures. Current estimates place Nigeria’s total crude and condensate supply at approximately 1.65 million barrels per day (bpd).
Industry analysts project that the stable integration of the Cawthorne stream could push this figure to 1.7 million bpd for the remainder of the 2026 fiscal year.
This incremental increase is vital for Nigeria as it seeks to maintain its influence within the global energy market and meet its domestic budgetary requirements.
This production surge also carries significant weight within the context of the Organisation of Petroleum Exporting Countries (OPEC). Nigeria’s current OPEC+ crude-only quota stands at 1.5 million bpd.
Recent data shows that the country pumped approximately 1.48 million bpd in January, bringing it remarkably close to its allocated limit.
The introduction of Cawthorne, alongside previous launches, strengthens Nigeria’s technical argument for a higher production target during upcoming OPEC ministerial meetings.
Nigerian officials have consistently maintained that the country possesses the capacity and the infrastructure to exceed current quotas, provided the investment climate remains stable.
The successful launch of Cawthorne is also a testament to the evolving partnership models between the NNPC and independent producers.
OML 18, the primary source of the new grade, has been a focal point for indigenous participation in the upstream sector. The ability of these local entities to bring new streams to the international market reflects a maturation of the Nigerian oil industry, moving away from a sole reliance on International Oil Companies (IOCs) for major production breakthroughs.
From a macroeconomic perspective, the timing of the Cawthorne launch is fortuitous. As global energy markets remain sensitive to geopolitical shifts, the reliable supply of high-quality light crude from West Africa remains a priority for European and Asian refiners.
The revenue generated from these exports will play a critical role in supporting the Nigerian Naira and funding the various social and infrastructure projects outlined in the national budget.
Furthermore, the diversification of crude grades allows the NNPC to target specific refinery configurations across different continents, optimizing the value of every barrel produced.
As the FSO Cawthorne prepares for its first loading in late March, the global oil industry will be watching closely to see how the new grade performs in spot markets.
The project serves as a blueprint for how Nigeria intends to utilize FSO technology to unlock stranded assets in difficult-to-reach terrains.
The government remains optimistic that with continued security interventions and technological investments, the “Cawthorne model” can be replicated across other idle leases in the Niger Delta, ensuring that the country remains on a steady path toward its long-term production goals of 2 million bpd.
