The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said 22 recent oil block awardees are expected to contribute at least 250,000 barrels per day (bpd) to Nigeria’s crude oil production within five years.
The Commission also disclosed that domestic refineries received more than 127 million barrels of Nigerian crude oil and condensate between January and September 2026, reflecting improved implementation of the Domestic Crude Supply Obligation (DCSO).
The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, disclosed this on Monday while speaking at the OTL Africa Downstream Energy Week 2026 in Lagos.
Eyesan, who was represented by the Assistant Director, Operations, Mr Prosper Omonedo, said the expected production contribution from the new awardees was part of efforts to boost national output and discourage speculative acquisition of petroleum assets.
She said the Commission was enforcing the drill-or-drop principle to ensure that licence holders develop their assets rather than keep them idle.
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On the 2026 Licensing Round, Eyesan said the 40 oil blocks on offer would undergo a transparent evaluation process, backed by published criteria and mandatory disclosure of beneficial ownership.
Speaking on the theme, ‘Secure Energy, Shared Prosperity’, the NUPRC chief executive said the Commission had also intensified efforts to ensure adequate crude oil supply to domestic refineries following commercial disagreements between producers and refiners that disrupted deliveries in the first quarter.
According to her, regulatory interventions and engagements with stakeholders improved supplies in the second and third quarters of the year.
She disclosed that 53.7 million barrels of crude oil and condensate were supplied to domestic refineries in the second quarter, representing 97.4 per cent performance, while 45.1 million barrels were delivered in the third quarter, representing 76.2 per cent performance.
“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 mandated to allocate crude oil to domestic refineries before exports.
Eyesan further disclosed that the Commission was consulting producers, refiners and other stakeholders on a domestic crude swap framework aimed at reducing transportation costs and improving refinery feedstock supply.
Under the proposed arrangement, she explained, refiners could receive crude from the nearest suitable production or export point instead of transporting their allocated grades over long distances.
The arrangement, according to her, could reduce the cost of every barrel by an estimated $3 to $4.
On national production, Eyesan said Nigeria recorded an average of 1.717 million barrels per day of crude oil and condensate in September 2026, representing a 2.34 per cent increase over the August figure.
She added that crude oil production alone averaged 1.53 million bpd, marking the fifth consecutive month the country met or exceeded its Organisation of Petroleum Exporting Countries (OPEC) production quota.
The NUPRC boss attributed the improvement to better asset integrity, enhanced security of oil evacuation infrastructure, stronger collaboration with operators and sustained regulatory efforts to restore shut-in production.
She reaffirmed the Commission’s commitment to meeting the Domestic Gas Delivery Obligation and working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to align refinery demand with crude supply planning.
Eyesan said the collaboration was necessary to ensure that improvements in upstream production translated into tangible benefits for households, industries and power generation.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X