Domestic refineries receive 127m barrels of crude

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed that domestic refineries received over 127 million barrels of Nigerian crude oil and condensate between January and September 2026. This significant increase in supply followed a successful resolution of supply disputes between producers and refiners. NUPRC CEO, Oritsemeyiwa Eyesan, attributed the improvement to a series of engagements with both producers and refiners.

The regulator is now exploring a crude swap framework to reduce transportation costs for local refineries, which could further enhance the economics of processing Nigerian crude domestically. The Domestic Crude Supply Obligation, set forth in the Petroleum Industry Act 2021, requires producers to supply crude to domestic refineries before export, fostering local refining and lessening reliance on imports.

However, commercial disagreements on pricing and supply arrangements have continued to hinder access to Nigerian crude for domestic refiners. The proposed crude swap framework could alleviate these issues by allowing refiners to obtain crude from the nearest suitable production or export point, thereby lowering logistics expenses.

Meanwhile, Nigeria's crude oil production averaged 1.717 million barrels per day in September, marking a 2.34% increase from the previous month. This production surge contributed to the regulator's efforts to meet the Domestic Gas Delivery Obligation.