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Nigerian Refineries Receive 127m Barrels of Crude in Nine Months

Zoyols News
Domestic refineries received more than 127 million barrels of Nigerian crude oil and condensate between January and September 2026, as efforts to improve local supply gained ground, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, disclosed the figures on Monday while addressing the OTL Africa Downstream Energy Week 2026 in Lagos. She spoke on the theme, “Secure Energy, Shared Prosperity,” through the Assistant Director of Operations, Mr Prosper Omonedo, who represented her at the event.

Eyesan said the Commission had stepped up engagements with oil producers and domestic refiners after commercial disagreements disrupted crude deliveries during the first quarter of the year.

She explained that the interventions helped improve supplies in the following months, with domestic refineries receiving 53.7 million barrels of crude oil and condensate in the second quarter and 45.1 million barrels in the third quarter.

According to her, supply performance reached 97.4 per cent in the second quarter and 76.2 per cent in the third quarter. Cumulatively, more than 127 million barrels of Nigerian crude had been delivered to local refineries between the first and third quarters.

Under Section 109 of the Petroleum Industry Act 2021, the NUPRC is responsible for allocating crude oil to domestic refineries before it is made available for export, supporting the government’s efforts to strengthen local refining capacity.

The Commission is also working with producers, refiners and other industry stakeholders to develop a domestic crude swap framework aimed at reducing transportation costs and improving supply efficiency.

Under the proposed arrangement, refiners could obtain crude from the nearest suitable production or export point instead of transporting an allocated grade over long distances. Eyesan said the approach could reduce costs by an estimated three to four dollars per barrel.

Beyond domestic crude supply, the NUPRC reported an improvement in Nigeria’s oil production during September. The country recorded an average daily output of 1.717 million barrels of crude oil and condensate, representing a 2.34 per cent increase compared with August.

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

Eyesan attributed the gains to improved asset integrity, stronger security around oil evacuation infrastructure, closer cooperation with operators and continued regulatory efforts to restore production from shut in facilities.

She also addressed the 2026 oil licensing round, stating that the 40 blocks on offer would undergo a transparent evaluation process based on published criteria. Applicants would also be required to disclose their beneficial ownership as part of efforts to strengthen accountability in the sector.

The Commission is enforcing the drill or drop principle to discourage companies from holding licences without developing the associated assets. Eyesan said 22 recent awardees were expected to contribute at least 250,000 barrels per day to national production within five years.

She reaffirmed the NUPRC’s commitment to meeting the Domestic Gas Delivery Obligation and working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority to align refinery demand with crude supply plans.

The Commission said these efforts are intended to ensure that improvements in upstream production and supply translate into practical benefits for households, industries and electricity generation across Nigeria.

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