53.7m barrels of crude oil, condensate supplied to local refiners in Q2

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says a total of 53.7 million barrels of crude oil and condensate were supplied to local refiners between April and June 2026 under the Domestic Crude Supply Obligation (DCSO).

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The figure represents an overall performance of 97.4 per cent in the second quarter of 2026, according to the Commission’s Q2 DCSO enforcement statistics published on Monday.

The DCSO is administered and enforced by the NUPRC in accordance with Section 109 of the Petroleum Industry Act (PIA) 2021.

Under the framework, the Commission holds monthly consultations with crude oil producers and licensed domestic refineries, after which specific volumes of crude oil and condensate are allocated to producers for supply to local refineries.

However, the framework operates on a “willing buyer, willing seller” basis, which influences the volume ultimately supplied and received.

In April, the NUPRC said it allocated 18,127,638 barrels to producers. The producers offered 19,312,476 barrels to local refiners, while 20,879,381 barrels were eventually supplied, representing 114.9 per cent performance against the allocated volume.

In May, the Commission allocated 18,778,392 barrels to producers. The producers offered 23,187,893 barrels to local refiners, but actual supplies stood at 14,228,865 barrels by the end of the month, representing 75.8 per cent compliance.

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For June, the NUPRC stated that it allocated 18,172,638 barrels to producers. The producers offered 26,835,119 barrels to refiners, while 18,606,026 barrels were eventually taken by the refiners, representing 102.4 per cent performance.

The Commission said the improvement in DCSO performance coincided with increased domestic oil production, and the signing of long-term crude supply agreements supported by bankable Sales and Purchase Agreements between producers and domestic refiners.

Meanwhile, in May, the NUPRC announced that Nigeria’s domestic refineries received only 28.5 million barrels of crude oil in the first quarter of 2026 despite producers offering 68.7 million barrels.

At the time, the NUPRC said a summary of the monthly allocations showed that 61.9 million barrels of crude oil were allocated to domestic refineries between January and March, while producers collectively offered a higher volume of 68.7 million barrels.

“However, actual supply to local refineries was 28.5 million barrels, translating to a supply conversion rate of 36-46 per cent as of the end of the first quarter (Q1) 2026,” the statement said.

The data for both Q1 and Q2 published so far highlight the persistent gap between crude oil volumes allocated, offered, and ultimately supplied to local refiners, amid government efforts to prioritise domestic refining and reduce reliance on imported petroleum products.

Dangote Refinery

At the refinery participation level, NUPRC said the statistics showed that the Dangote Refinery required 63 million barrels of crude oil during the second quarter.

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Producers, however, offered 68.1 million barrels to the refinery, representing 98 per cent of all crude volumes offered to local refiners during the period.

The refinery eventually accepted 52.6 million barrels, representing 78 per cent of the volume offered to it.

The NUPRC reaffirmed its commitment to achieving the Federal Government’s objective of energy sufficiency through effective implementation of the DCSO.

The Commission said it would continue to leverage the framework established under the PIA 2021 to sustain recent gains in crude oil production and strengthen enforcement of the domestic crude supply obligation.