Nigerian Refineries Receive 127 Million Barrels Of Crude In Nine Months – NUPRC

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that domestic refineries received more than 127 million barrels of Nigerian crude oil and condensate between January and September 2026, following interventions to address supply challenges between producers and refiners.

The Commission Chief Executive, Oritsemeyiwa Eyesan, said crude deliveries improved in the second and third quarters after commercial disagreements disrupted supplies in the first quarter of the year.

Eyesan disclosed this in a speech delivered by the Assistant Director, Operations, Prosper Omonedo, at the OTL Africa Downstream Energy Week 2026 in Lagos on Monday. The commission’s Head of Media and Corporate Communications, Eniola Akinkuotu, announced the development in a statement.

Speaking on the theme, “Secure Energy, Shared Prosperity,” Eyesan said the regulator had engaged oil producers and domestic refiners to improve compliance with the Domestic Crude Supply Obligation.

According to her, domestic refineries received 53.7 million barrels of crude oil and condensate in the second quarter, representing 97.4 per cent performance, while deliveries in the third quarter stood at 45.1 million barrels, representing 76.2 per cent.

She said the improved supply reflected the commission’s efforts to resolve disagreements and ensure that locally produced crude was made available to domestic refineries.

The Domestic Crude Supply Obligation, established under the Petroleum Industry Act 2021, requires crude oil producers to supply local refineries in support of domestic refining and efforts to reduce dependence on imported petroleum products.

However, disputes over pricing, payment terms and supply arrangements have continued to affect the availability of crude for local refiners.

To address these challenges, Eyesan said the commission was consulting producers, refiners and other industry stakeholders on a proposed domestic crude swap framework designed to reduce transportation costs.

Under the proposed arrangement, refiners could receive crude oil from the nearest suitable production or export point rather than transport an allocated crude grade over long distances.

She explained that the framework could reduce transportation costs by an estimated $3 to $4 per barrel, potentially improving the economics of domestic refining.

The commission said the success of the arrangement would depend on its implementation and the participation of relevant industry stakeholders.

On crude oil production, Eyesan disclosed that Nigeria recorded an average output of 1.717 million barrels per day of crude oil and condensate in September, representing a 2.34 per cent increase from the previous month.

Crude oil production alone averaged 1.53 million barrels per day, marking the fifth consecutive month the industry met or exceeded its production quota.

She attributed the improvement to better asset integrity, enhanced security around evacuation infrastructure, stronger collaboration with operators and sustained regulatory efforts to restore previously shut-in production.

Eyesan also addressed the 2026 oil licensing round, stating that the 40 blocks on offer would undergo a transparent evaluation process based on published criteria and mandatory disclosure of beneficial ownership.

She added that the commission was enforcing the “drill-or-drop” principle to discourage speculative ownership of oil licences. Under the policy, licence holders are expected to develop their assets or risk losing them.

According to her, 22 recent awardees are expected to contribute at least 250,000 barrels per day to national production within five years.

The NUPRC chief further reaffirmed the commission’s commitment to meeting the Domestic Gas Delivery Obligation and collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority to align refinery demand with crude supply planning.

She said the regulator’s priority was to ensure that improvements in upstream production translated into tangible benefits for households, industries and power generation.

Nigeria has intensified efforts to expand domestic refining capacity and reduce its dependence on imported refined petroleum products. The 700,000-barrel-per-day Dangote Petroleum Refinery, alongside other private refining facilities, has further increased the need for a reliable supply of locally produced crude oil.

The proposed crude swap framework is expected to help address some of the logistical and commercial constraints facing domestic refiners, while supporting the country’s broader energy security objectives.