The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that oil producers offered 58.8 million barrels of crude to domestic refineries in Q2 2026 under the Domestic Crude Supply Obligation (DCSO) framework—surpassing the allocated 55.1 million barrels by 3.7 million. This exceeds prior allocations and signals stronger upstream commitment amid rising local refining capacity, driven by Dangote Petroleum Refinery expansions and modular upgrades.
NUPRC’s latest enforcement report, obtained Friday, highlights producers’ increased willingness despite a quarterly drop from Q1’s 68.7 million barrels offered (against 61.9 million allocated). The regulator attributes past shortfalls to pricing disputes, grade mismatches, and the “willing buyer, willing seller” model, which hampers strict enforcement and refinery utilization.
The commission also noted that final supplied volumes and conversion rates will follow May 2026 Domestic Crude Request Review (DCRR) and Production Curtailment Management (PCM) meetings. The DCSO, mandated by the Petroleum Industry Act, prioritizes local refiners’ feedstock before exports, with NUPRC enforcing compliance via periodic allocations.
Amid challenges, NUPRC faces mounting pressure to resolve issues: CORAN’s Eche Idoko cited Dangote’s import reliance on cheaper WTI over premium Brent-linked local crude due to economics. Sources confirm NUPRC is spearheading a late-May roundtable with producers and refiners to tackle pricing, availability, and commercial terms—excluding self-supplied modulars like Waltersmith and Aradel.
NUPRC views sustained DCSO adherence as key to energy self-sufficiency, cutting forex strain, and boosting value addition, with Q2 outcomes hinging on post-meeting data.
