The regulator says improved engagement with producers has boosted domestic supplies, while a proposed crude swap arrangement could cut transportation costs by $3 to $4 per barrel……
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says domestic refineries received more than 127 million barrels of Nigerian crude oil and condensate between January and September 2026, following interventions to resolve supply disruptions.
The Commission Chief Executive, Oritsemeyiwa Eyesan, disclosed this on Monday, October 26, at the OTL Africa Downstream Energy Week 2026 in Lagos.
Eyesan, who was represented by the Assistant Director of Operations, Prosper Omonedo, said the Commission’s engagement with producers and refiners had helped improve deliveries after commercial disagreements disrupted supplies in the first quarter of the year.
According to a statement published on the NUPRC website and signed by its Head of Media and Corporate Communications, Eniola Akinkuotu, the regulator is also exploring a domestic crude swap framework to lower transportation expenses and improve access to feedstock for local refineries.
Eyesan said crude oil and condensate supplies to domestic refineries improved significantly in the second and third quarters following the Commission’s intervention.
She disclosed that refineries received 53.7 million barrels in the second quarter, representing 97.4 per cent of the expected supply performance, while deliveries reached 45.1 million barrels in the third quarter, equivalent to 76.2 per cent.
“We engaged producers and refiners, and in the second and third quarters, 53.7 and 45.1 million barrels of crude oil and condensate were supplied to domestic refineries, an overall performance of 97.4 and 76.2 per cent, respectively. From Q1–Q3 of 2026, more than 127 million barrels of Nigerian crude went to Nigerian refineries,” she said.
Under Section 109 of the Petroleum Industry Act 2021, the NUPRC is responsible for allocating crude oil to domestic refineries before exports.
The Commission is consulting oil producers, refiners and other stakeholders on a proposed crude swap arrangement that would enable refineries to obtain suitable crude from nearby production or export terminals rather than transport their allocated grades over longer distances.
According to Eyesan, the arrangement could reduce transportation costs by between $3 and $4 per barrel, potentially easing the logistical burden associated with domestic crude supply.
The latest disclosure follows an earlier report that local refineries received 53.7 million barrels of crude oil and condensate in the second quarter of 2026, with supply performance reaching 97.4 per cent of expectations.
The NUPRC chief executive also reported an improvement in Nigeria’s upstream production, disclosing that average crude oil and condensate output reached 1.717 million barrels per day in September, representing a 2.34 per cent increase from 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 improvement to better asset integrity, enhanced security around evacuation infrastructure, closer collaboration with operators and regulatory interventions aimed at restoring shut-in production.
The Commission had earlier identified more than 788,000 barrels per day of shut-in production across 63 operators for possible restoration as part of efforts to raise national output.
The restoration of these volumes could provide additional support for Nigeria’s production ambitions if operators successfully bring the affected assets back online.
On the 2026 oil and gas licensing round, Eyesan said the 40 blocks being offered to investors would undergo a transparent evaluation process based on published criteria, with mandatory disclosure of beneficial ownership.
She said the Commission was enforcing the drill-or-drop principle to discourage speculative ownership of oil and gas licences.
Under the approach, licence holders are expected to develop their assets rather than retain them without meaningful exploration or production activity.
The Commission expects 22 recent awardees to contribute at least 250,000 barrels per day within five years.
The licensing round follows the Federal Government’s decision to offer 40 blocks across onshore, shallow-water and deepwater locations to local and international investors.
Separately, earlier industry coverage indicated that assets from the 2025 licensing round could add approximately 500 million barrels to Nigeria’s reserves and at least 300,000 barrels per day of crude oil and condensate production within five years, subject to successful development.
