Nigeria meets OPEC quota for fourth straight month
August production improved by resolution of challenges at Erha field
Dangote refinery buys 16m barrels of Nigeria’s crude for October
Emmanuel Addeh in Abuja and Peter Uzoho in Lagos
Nigeria’s crude oil and condensate production rose marginally by 6,887 barrels per day (bpd) in August 2026, reaching 1,677,777 bpd, according to the latest data from the Nigerian Upstream Regulatory Commission (NUPRC).
The August output represented a 0.4 per cent increase over the 1,670,890 bpd recorded in July, with the commission attributing the improvement largely to the resolution of operational challenges involving the Single Buoy Mooring (SBM) at the Erha field.
In strict crude oil terms, excluding condensates, Nigeria produced 1,500,190 bpd during the month, allowing the country to meet its Organisation of Petroleum Exporting Countries (OPEC) quota for the fourth consecutive month.
During the period under review, the lowest daily production of crude oil and condensates stood at 1.64 million barrels per day, while the highest combined daily output reached 1.71 million bpd.
A breakdown of average daily crude oil and condensate production by terminals and streams showed that Bonny Terminal was the largest contributor in August, with 320,040 barrels per day.
Forcados Terminal followed closely, recording an average daily production of 317,400 barrels per day, while Qua Iboe Terminal accounted for 171,720 barrels of crude oil and condensates.
Escravos Oil Terminal recorded an average daily production of 131,710 barrels per day, while Bonga ranked as the fifth-highest producing terminal, with an average of 92,500 barrels per day of crude oil.
The NUPRC said the modest increase in overall production was largely driven by the resolution of SBM operational challenges at the Erha field, which had negatively affected production performance in the preceding month.
According to the commission, the restoration of normal evacuation and production operations at the asset contributed positively to Nigeria’s overall production volumes in August.
Production activities across most other producing assets, it added, remained relatively stable, with operators continuing to implement measures aimed at optimising production efficiency, maintaining asset integrity and minimising operational disruptions.
Routine production and crude evacuation operations were also generally sustained across the industry, supporting the improvement recorded during the month.
Although the increase in August production was modest, the commission said it reflected the industry’s continuing efforts to address operational bottlenecks and restore affected production capacity.
It noted that stakeholders remained focused on improving asset reliability and operational resilience, while advancing intervention programmes designed to support sustained production growth in the coming months.
The August performance, according to the NUPRC, also underscored the importance of the timely resolution of operational constraints, effective asset management practices and continued collaboration among industry stakeholders in safeguarding and improving Nigeria’s crude oil production capacity.
Meanwhile, the Dangote Petroleum Refinery has purchased at least 16 million barrels of Nigerian crude oil for delivery in October, in a development that underscores the refinery’s growing appetite for domestic crude as it ramps up processing.
Four industry sources told Reuters that the volume was broadly in line with the refinery’s purchases in recent months, but significantly higher than its average Nigerian crude purchases last year.
The 16 million barrels comprise monthly allocations from the Nigerian National Petroleum Company (NNPC) and additional volumes purchased through a tender, amounting to about 520,000 bpd and accounting for most of the 700,000-bpd refinery’s monthly intake.
The refinery is currently preparing for an Initial Public Offering (IPO), with the reliability and adequacy of feedstock supplies expected to be an important consideration for investors.
Dangote’s increased purchases could also reduce the volume of Nigerian crude available for export at a time when international demand for the country’s crude is strong, following the Iran war and the resulting sharp reduction in competing Middle Eastern supply.
The final volume of Nigerian crude purchased by the refinery for October could increase further if Dangote secures additional supplies. Dangote did not respond to a request for comment by Reuters.
Kpler data showed that the refinery received 565,000 bpd of Nigerian crude in August, nearly twice its average Nigerian crude intake of 280,000 bpd recorded last year.
A source familiar with the matter said NNPC would supply Dangote with eight Nigerian crude cargoes for October, in addition to one cargo of US WTI Midland crude. That would match the monthly record for NNPC supplies to the refinery, following similar volumes supplied in April, May and August, according to Kpler data.
Two traders also said the refinery had purchased a second WTI cargo for October from a different supplier through a spot tender.
Dangote also secured additional Nigerian cargoes to bring its total October crude purchases to 16 million barrels.
The refinery has in recent months expanded the range of crude grades it sources from outside Nigeria, including supplies from Libya and Guyana, as it seeks to maintain feedstock availability for its large-scale operations.