KEY POINTS
- NNPC has invited bids for 950,000 barrels of its new Cawthorne light sweet crude, with loading scheduled for July 10–11, 2026.
- The bidding exercise is a trial marketing process aimed at discovering the appropriate market price for the new crude grade.
- The launch of Cawthorne supports Nigeria’s strategy to boost oil production and diversify crude exports, despite growing competition in the global oil market.
Nigeria’s state-owned oil company, Nigerian National Petroleum Company Limited, NNPC, has commenced a competitive bidding process for the marketing of its newly introduced Cawthorne crude oil grade as part of efforts to expand the country’s crude export portfolio and strengthen oil production.
According to a Reuters report, NNPC Trading Limited (NTL), the company’s trading subsidiary, has issued a tender inviting buyers to submit bids for the purchase of 950,000 barrels of the new light sweet crude oil grade.
The tender document, seen by Reuters on Wednesday, indicated that the cargo is scheduled for loading between July 10 and July 11, 2026, on a Free-on-Board (FOB) basis, allowing buyers to take ownership of the cargo at the loading terminal.
Trial Marketing to Determine Market Value
NNPC explained that the bidding exercise is part of a trial marketing process designed to establish an appropriate market price for the newly introduced crude stream.
NNPC spokesperson Andy Odeh said the exercise is aimed at price discovery for the Cawthorne crude.
“NNPC Trading Limited is running a trial marketing process with the aim of price discovery for Cawthorne crude,” Odeh said.
The process will enable the company to gauge international demand, assess buyer interest, and determine competitive pricing before the crude is fully integrated into Nigeria’s regular export programme.
The Cawthorne crude grade was first introduced into the export market in March 2026.
Data from commodities analytics firm Kpler shows that approximately 42,000 barrels per day (bpd) of the crude were exported during April and May, suggesting growing acceptance of the new grade in international markets.
Cawthorne is classified as a light sweet crude, a category of oil that generally commands strong demand because of its relatively low sulphur content and the lower cost of refining it into premium petroleum products.
The introduction of Cawthorne crude forms part of Nigeria’s broader strategy to increase crude oil production and diversify its export offerings after years of declining output.
Nigeria’s oil industry has struggled with several challenges, including underinvestment, crude oil theft, pipeline vandalism, and operational disruptions, all of which have significantly affected production levels.
