Nigerian oil producers surpass crude offers to local refineries
Oil producers in Nigeria have offered more crude oil to domestic refineries than officially allocated under the Domestic Crude Supply Obligation framework. The Nigerian Upstream Petroleum Regulatory Commission reported that offers exceeded allocations, reflecting increased willingness to supply local processors. Dangote Petroleum Refinery and modular plants are driving demand, but challenges remain due to pricing and crude grade issues. Discussions are ongoing among regulators, producers, and refiners to address commercial terms and supply stability.
TLDR
- Oil producers offered 58.8 million barrels of crude to local refineries in the second quarter of 2026, surpassing the 55.1 million barrels allocated.
- Final supplied volumes and conversion rates will be released after the May 2026 Domestic Crude Request Review and Production Curtailment Management meetings.
- Dangote Petroleum Refinery relies partly on imported crude due to pricing and product compatibility, according to Eche Idoko of the Crude Oil Refiners Association of Nigeria.
- Modular refineries like Waltersmith and Aradel source crude from their own fields, providing more stable supply than other local refiners.
- Stakeholders, including the Nigerian Upstream Petroleum Regulatory Commission, are set to meet before the end of the month to discuss pricing, availability, and commercial terms for domestic crude supply.
