NNPC Seeks Buyers for September Crude Cargoes

The Nigerian National Petroleum Company (NNPC) has issued fresh tenders to sell September cargoes of its newly introduced Cawthorne crude grade alongside Bonny Light as the country seeks to expand crude exports and attract more international buyers.

Tender documents seen by Reuters show that the Cawthorne cargo, comprising 950,000 barrels, is scheduled to load between September 21 and 22. NNPC is also offering a 950,000-barrel Bonny Light cargo for loading between September 30 and October 1. Both cargoes are being sold on a free-on-board basis, with bids due by 8:00 p.m. West Africa Time on August 4.

Cawthorne, which was first exported in March, is one of several new crude grades introduced by Nigeria alongside Nembe and Utapate. The new grades form part of the country’s strategy to boost oil production, diversify export streams and strengthen its position in the global crude market after years of underinvestment, crude theft and operational disruptions.

According to a preliminary loading programme, Bonny Light production is expected to average about 364,000 barrels per day across 12 cargoes during the September loading cycle.

Traders said sellers of West African crude have started increasing asking prices because of supply concerns linked to rising tensions in the Middle East. However, trading activity has remained subdued as buyers continue to assess uncertainty over shipping routes through the Strait of Hormuz and the Red Sea, both of which are critical to global energy supplies.

SOURCE: Reuters