The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has released its second-quarter statistics on the enforcement of the Domestic Crude Supply Obligation (DCSO), recording an overall compliance rate of 97.4% for the April-June period, in line with Section 109 of the Petroleum Industry Act (PIA).
According to the figures, a total of 53.7 million barrels of crude oil and condensate were supplied to local refiners during the quarter, underscoring what the Commission described as active and sustained enforcement of the domestic supply framework.
The DCSO process operates through monthly consultations between the Commission, crude oil producers, and licensed local refineries, after which producers are allocated specific volumes of crude oil and condensate to offer to refiners. However, in keeping with the PIA, the arrangement ultimately runs on a “willing-buyer, willing seller” basis, which shapes eventual outcomes.
NUPRC’s Head of Media and Corporate Communications, Eniola Akinkuotu, disclosed in a statement on Monday that monthly performance fluctuated across the quarter, noting that In April, the Commission allocated 18, 127, 638 barrels to producers, who exceeded expectations by offering 19, 312, 476 barrels to refiners. By month end, 20, 879, 381 barrels were actually supplied – representing 114.9% of the allocation.
In May, an allocation of 18,778, 392 barrels was again surpassed at the offer stage, with producers proposing 23,187,893 barrels to the refiners. Actual supply, however, fell to 14, 228, 865 barrels, translating to a 75.8% compliance rate for the month.
June saw a rebound, with 18, 172,638 barrels allocated, 26, 835, 119 barrels offered, and 18, 606, 026 barrels ultimately taken up by refiners, a performance of 102.4%.
The Commission attributed the overall improvement in DCSO performance to a rise in local oil production alongside the signing of long-term crude supply agreements, backed by bankable Sale and Purchase Agreements between producers and domestic refiners.
Dangote Refinery dominated offtake activity. The statistics show that Dangote Refinery required 63 million barrels during the quarter, but producers offered a higher volume of 68.1 million barrels, accounting for 98% of all volumes offered industry wide. Of that, the refinery accepted 52.6 million barrels, representing 78% of what it was offered.
The Commission reaffirmed its commitment to the federal government’s energy sufficiency objectives, saying it would continue leveraging the PIA framework to sustain recent production gains while maintaining strict enforcement of the DCSO.
