By Abiodun Folarin
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said domestic refineries received more than 127 million barrels of Nigerian crude oil and condensate between January and September 2026, indicating improved implementation of the Domestic Crude Supply Obligation (DCSO).
The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, disclosed this on Monday at the OTL Africa Downstream Energy Week 2026 in Lagos.
Eyesan, who was represented by the Assistant Director, Operations, Mr. Prosper Omonedo, said the Commission’s interventions had improved crude deliveries following commercial disagreements between producers and refiners that disrupted supplies in the first quarter.
She said domestic refineries received 53.7 million barrels of crude oil and condensate in the second quarter and 45.1 million barrels in the third quarter, representing supply performance rates of 97.4 per cent and 76.2 per cent, respectively.
“From Q1–Q3 of 2026, more than 127 million barrels of Nigerian crude went to Nigerian refineries,” she said.
Under Section 109 of the Petroleum Industry Act 2021, the NUPRC allocates crude oil to domestic refineries ahead of exports.
Eyesan said the Commission was also consulting producers, refiners and other stakeholders on a domestic crude swap framework designed to reduce transportation costs.
Under the proposed arrangement, a refiner could receive crude from the nearest suitable production or export point rather than transport an allocated grade over long distances.
“This could take an estimated three to four dollars off the cost of every barrel,” she said.
On production, Eyesan said Nigeria recorded an average of 1.717 million barrels per day of crude oil and condensate in September, representing a 2.34 per cent increase over August.
Crude oil production alone averaged 1.53 million barrels per day, marking the fifth consecutive month the industry met or exceeded its quota.
She attributed the improvement to better asset integrity, enhanced security of evacuation infrastructure, stronger collaboration with operators and sustained regulatory efforts to restore shut-in production.
On the 2026 licensing round, Eyesan said the 40 blocks on offer would undergo a transparent evaluation process based on published criteria, with mandatory disclosure of beneficial ownership.
She added that the Commission was enforcing the drill-or-drop principle to discourage speculative holding of licences, noting that 22 recent awardees were expected to contribute at least 250,000 barrels per day within five years.
The NUPRC chief reaffirmed the Commission’s commitment to meeting the Domestic Gas Delivery Obligation and working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to align refinery demand with crude supply planning.
She said the objective was to ensure that improvements in upstream production translated into tangible benefits for households, industries and power generation.
