By Abiodun Folarin
WorldStage– The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said Local refineries received a total of 53.7 million barrels of crude oil and condensate between April and June 2026, representing 97.4 per cent performance under the Domestic Crude Supply Obligation (DCSO)
The Q2 2026 DCSO statistics released by the Commission on Monday, showed that crude oil supply to domestic refiners remained high despite the operation of the framework on a “willing buyer, willing seller” basis as provided under the Petroleum Industry Act (PIA).
The DCSO is administered by NUPRC pursuant to Section 109 of the PIA, with the Commission holding monthly consultations with crude oil producers and licensed domestic refineries before allocating volumes of crude oil and condensate to producers for supply to local refiners.
According to the Commission, the 97.4 per cent performance recorded in the second quarter reflects the impact of rising domestic crude production and the signing of long-term crude supply agreements backed by bankable Sales and Purchase Agreements (SPAs) between producers and domestic refiners.
Statistics showed that in April, NUPRC allocated 18.13 million barrels of crude oil and condensate to producers for domestic refining.
Producers subsequently offered 19.31 million barrels to local refiners, while actual supply stood at 20.88 million barrels, representing 114.9 per cent performance against the allocated volume.
The April performance was the highest monthly result recorded during the quarter.
It however also revealed in May, the Commission allocated 18.78 million barrels to producers, who offered 23.19 million barrels to domestic refiners.
However, actual supply fell to 14.23 million barrels, representing 75.8 per cent compliance with the allocated volume.
The outcome reflected the gap between crude volumes offered by producers and volumes eventually supplied to local refiners under the willing-buyer, willing-seller framework.
The DCSO performance improved again in June, with NUPRC allocating 18.17 million barrels to producers.
Producers offered 26.84 million barrels to refiners, while actual volumes taken by refiners reached 18.61 million barrels, translating to 102.4 per cent performance.
The June performance, according to the Commission, contributed significantly to the overall 97.4 per cent DCSO performance for the quarter.
At the refinery level, the data showed that the Dangote Refinery required 63 million barrels of crude oil during Q2.
Producers, however, offered the refinery 68.1 million barrels, equivalent to 98 per cent of all volumes offered during the quarter.
Despite the higher volumes offered, the Dangote Refinery ultimately accepted 52.6 million barrels, meaning it took about 78 per cent of the crude volumes offered to it.
The figures underscore the role of both supply availability and refinery uptake in determining the actual outcome of the DCSO framework.
The Commission said the improvement in domestic crude supply coincided with increased local oil production and the execution of long-term crude supply agreements supported by bankable SPAs between producers and domestic refiners.
NUPRC reaffirmed its commitment to using the DCSO framework established under the PIA 2021 to support the Federal Government’s objective of achieving energy sufficiency.
It said it would continue to sustain the recent gains in crude oil production while strengthening enforcement of the DCSO to ensure adequate crude supply for domestic refining.
