The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has reported a 97.4 per cent performance in the implementation of the Domestic Crude Supply Obligation, DCSO, in the second quarter of 2026.
The Commission said a total of 53.7 million barrels of crude oil and condensate were supplied to local refineries between April and June, in line with the provisions of Section 109 of the Petroleum Industry Act, PIA.
According to a statement issued by the NUPRC Head of Media and Corporate Communications, Eniola Akinkuotu, the Q2 statistics demonstrate that the DCSO is being actively administered and enforced by the Commission.
Under the DCSO framework, the Commission holds monthly consultations with stakeholders, including crude oil producers and licensed domestic refineries, following which specific volumes of crude oil and condensate are allocated to producers for supply to local refineries.
The Commission, however, noted that the framework operates on a “willing buyer, willing seller” basis, in accordance with the PIA, which ultimately influences the volumes exchanged between producers and refiners.
In April, following consultations with stakeholders, the Commission allocated 18,127,638 barrels to producers.
The producers subsequently offered 19,312,476 barrels to refiners, exceeding their allocated volume.
At the end of the month, local refiners received 20,879,381 barrels, representing 114.9 per cent performance against the allocated volume.
In May, the Commission allocated 18,778,392 barrels of crude oil to producers.
The producers offered 23,187,893 barrels to local refiners, but actual supply stood at 14,228,865 barrels by the end of the month, representing 75.8 per cent compliance.
For June, the Commission allocated 18,172,638 barrels to producers, who offered 26,835,119 barrels to refiners. Local refiners took 18,606,026 barrels, representing a 102.4 per cent performance.
The Commission attributed the improvement in DCSO performance partly to increased domestic crude oil production and the execution of long-term crude supply agreements, backed by bankable Sales and Purchase Agreements between producers and domestic refiners.
On refinery participation, the Q2 statistics showed that Dangote Refinery required 63 million barrels, while producers offered 68.1 million barrels.
The 68.1 million barrels offered to Dangote Refinery accounted for 98 per cent of the total volumes offered by producers.
However, the refinery ultimately accepted 52.6 million barrels, representing 78 per cent of the volume offered.
The Commission reaffirmed its commitment to achieving the Federal Government’s objective of energy sufficiency, stressing that it would leverage the framework of the Petroleum Industry Act, 2021, to sustain recent gains in crude oil production and strengthen enforcement of the DCSO.
NUPRC said it would continue to work with producers, domestic refiners and other stakeholders to ensure a more effective and sustainable supply of crude oil to local refineries.
