97.4% compliance recorded for domestic crude supply obligations in Q2 2026

By Firdaus Jibril

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that Nigeria achieved a 97.4 percent compliance rate in enforcing the Domestic Crude Supply Obligation (DCSO) during the second quarter of 2026.

According to the NUPRC statistics published pursuant to Section 109 of the Petroleum Industry Act (PIA), a total of 53.7 million barrels of crude oil and condensate were delivered to local refineries between April and June 2026.

The Commission explained that the DCSO framework is administered through monthly consultations involving crude oil producers and licensed domestic refiners, during which producers receive specific volume allocations to offer to local refineries.

However, final transaction volumes remain subject to commercial negotiations under a “willing buyer, willing seller” principle.

Performance fluctuated across the three-month period. In April, producers received an allocation of 18.13 million barrels and offered 19.31 million barrels to refiners, with actual deliveries reaching 20.88 million barrels, representing a 114.9 percent performance against the allocated benchmark.

May saw allocations of 18.78 million barrels and offers of 23.19 million barrels, though actual deliveries dropped to 14.23 million barrels, or 75.8 percent performance.

In June, 18.17 million barrels were allocated and 26.84 million barrels were offered, with actual deliveries reaching 18.61 million barrels, representing a 102.4 percent performance rate.

The commission attributed the overall high compliance rate to gains in domestic crude oil production and the execution of long-term, bankable Sales and Purchase Agreements (SPAs) between producers and domestic refiners.

At the refining level, the Dangote Refinery required 63 million barrels of crude oil during the second quarter, while producers offered 68.1 million barrels.

The volume offered to the facility constituted 98 percent of total crude allocations made across the domestic market during the three-month period. Out of the total offered, the refinery accepted and took delivery of 52.6 million barrels, representing 78 percent of the offered volume.

The Commission further reaffirmed its commitment to enforcing the DCSO framework and sustaining domestic oil production to strengthen national energy security.