Nigeria launches new tender for sale of Cawthorn crude
An additional shipment of Pony Light arrives amid anticipation in oil markets.
Written by Ziad Abdel Fattah:
The Nigerian National Petroleum Corporation (NNPC) has launched two new tenders for the sale of shipment From Cawthorne crude, the newest type of crude oil that Nigeria has begun exporting this year, along with an additional shipment of Bonny Light crude, according to documents seen by Reuters.
Nigeria began exporting Cawthorn crude last March, joining the recently launched Nembe and Otabaté crudes, as part of the government's efforts to increase oil production and diversify its exports after years of declining investment, oil theft, and operational disruptions.
The shipment quantity is 950,000 barrels.
According to the tender documents, a cargo of Cawthorne crude, amounting to approximately 950,000 barrels, is scheduled to be loaded on September 21 and 22, while the company is also offering a cargo of Bonny Light crude of the same quantity, to be loaded on September 30 and October 1.
The two shipments are being sold on a free-on-board (FOB) basis, with the deadline for receiving bids being 8:00 PM West Africa Time (7:00 PM GMT) on August 4.
In the same context, a preliminary loading program seen by Reuters showed that Bonny Light crude exports would reach about 364,000 barrels per day across 12 shipments in the coming period.
Raising sales offer levels
Oil market traders told Reuters that West African crude producers have begun raising their selling levels in recent sessions, driven by increasing supply disruptions in the Middle East, but trading activity remains limited as traders await further clarity on the situation in the Strait of Hormuz and the Red Sea, and the potential impact on global oil supply.
Nigerian Energy Minister Joseph Tigbei announced that the federal government intends to end subsidies for the electricity sector starting in 2027, while also confirming that there are no immediate plans to increase electricity tariffs.
The minister said during an interactive meeting with the media on Friday that the government has announced a plan to phase out electricity subsidy payments starting in 2027, as part of its efforts to address the growing financial obligations facing the energy sector.
