Energy
Oil theft: Crude oil losses drops to 16-year low
Nigeria’s upstream oil sector is witnessing a dramatic turnaround, with crude oil losses from theft and metering issues dropping to their lowest levels in nearly 16 years. In July 2025, daily losses stood at 9,600 barrels per day (bpd), the lowest figure since 2009 when losses dropped to all-time low of 8,500 bpd.
This is based on trends of crude oil losses year-to-date July 2025, released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This progress marks a major leap forward in the Commission’s relentless drive to eliminate all forms of crude losses across Nigeria’s oilfields and pipelines.
According to the report, between January and July 2025, crude oil losses were contained at 2.04 million barrels, averaging 9,600 barrels per day over the seven-month period. This marks a clear departure from the high-loss years that have long plagued the industry.
By comparison, the entire 2024 calendar year recorded 4.1 million barrels loss at a daily average of 11,300 barrels. Remarkably, in just the first seven months of 2025, losses were cut by 50.2 per cent, with only 2.04 million barrels lost over the period.
The figures for the period ending July 2025 also represent a dramatic 94.57per cent drop in crude oil losses compared to the full year of 2021, when Nigeria lost 37.6 million barrels at a daily average of 102,900 barrels.
So far in 2025, only 2.04 million barrels have been lost, which is a reduction of 35.56 million barrels compared to the 37.6 million barrels lost in 2021, underscoring the scale of progress made in four years.
Crude oil losses in 2021 were the highest recorded in nearly 23 years, making it the peak year between 2002 and July 2025.
Since the implementation of the Petroleum Industry Act in 2021, Nigeria has recorded steady progress in reducing crude oil losses. In 2021, losses stood at 37.6 million barrels, averaging 102,900 barrels per day. By 2022, this dropped to 20.9 million barrels at a daily average of 57,200 barrels.
The downward trend continued in 2023, with losses reduced to 4.3 million barrels at 11,900 barrels per day. Even more progress was made in 2024, as losses were further contained to 4.1 million barrels, averaging 11,300 barrels per day.
The statement noted that the NUPRC has adopted a balanced mix of kinetic and non-kinetic strategies in tackling oil losses. On the kinetic front, the Commission continued to collaborate closely with security agencies, operators and communities.
On the non-kinetic front, NUPRC has implemented strategic regulatory measures to close systemic loopholes. One key initiative is the metering audit across upstream facilities to ensure accurate measurement of production and exports.
To further strengthen control, NUPRC under the leadership of Gbenga Komolafe, an engineer, approved 37 new crude oil evacuation routes to combat oil theft.
Energy
DSCO: 53.7mb of crude supplied in Q2 2026
• Dangote Refinery tops with 52.6mb
By Oluwayanmife Lucas
A total of 53.7 million barrels of crude oil and condensate were supplied to local refiners between April and June, under the Domestic Crude Supply Obligation (DCSO). The figure translates to an overall performance of 97.4 per cent for the second quarter (Q2) of 2026.
The Domestic Crude Supply Obligation (DCSO) is a statutory requirement under Nigeria’s Petroleum Industry Act (PIA) of 2021. It compels upstream oil producers to allocate a specific portion of their crude oil production to local, licensed refineries before they can export the rest. This policy aims to guarantee energy security, reduce heavy reliance on imported petroleum products and shield the domestic economy from foreign exchange volatility.
This was contained in the latest report released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on the enforcement of the DCSO in accordance with the provisions of Section 109 of the Petroleum Industry Act (PIA). In line with the PIA, the framework operates on a “willing buyer, willing seller” basis, which shapes eventual outcomes.
In the period under review, on refinery supply basis, he report showed that the Dangote Refinery, which required 63 million barrels in Q2, was offered higher volumes of 68.1 million barrels by the producers. The 68.1 million barrels offered to the Dangote Refinery by producers, the report said, represents 98 per cent of all offered volumes. Dangote Refinery however accepted 52.6 million barrels, representing 78 per cent of the quantity offered her.
The remaining 1.1 million barrels of crude oil supplied were shared by Aradel, Waltersmith, Edo, and another refinery.
According to the report, in the month of April, following consultations with stakeholders, 18, 127, 638 barrels were allocated to producers. It noted that the producers exceeded expectation, offering19, 312, 476 barrels to refiners. Eventually, 20, 879, 381 barrels were supplied to local refiners, meaning the producers met 114.9 per cent of their allocation.
In May, the Commission, in enforcing its DCSO, allocated 18,778, 392 barrels of crude oil to the producers but the producers exceeding their expectation once again, offered 23,187,893 barrels to the local refiners. However, the producers’ actual supply to the refiners by the end of the month stood at 14, 228, 865 barrels representing 75.8 per cent compliance.
NUPRC, in June allocated 18, 172,638 barrels to the producers, while the producers offered 26, 835, 119 barrels to refiners which in turn took 18, 606, 026 barrels representing a 102.4 per cent performance.
In a statement signed by the NUPRC’s Head, Media and Corporate Communications, Eniola Akinkuotu, stated that the improvement in DCSO coincided with an increase in local oil production and the signing of the long term crude supply agreement supported by bankable Sales and Purchase agreement between the Producers and Domestic refiners.
The Commission reaffirms its commitment to achieving the government’s objective of energy sufficiency. Leveraging the framework of the PIA, 2021, the Commission aims to sustain recent gains in crude oil production while continuously enforcing the DCSO.
Akinkuotu in the statement said the statistics shows that DCSO is being actively administered and enforced by the NUPRC. It explained that on a monthly basis, the Commission meets with stakeholders including crude oil producers and local licensed refineries after which the producers are allocated a specific volume of their crude oil and condensate which should be offered to local licensed refineries.
Energy
NDPHC calls for electricity optimisation to drive socio-economic growth
By Temitayo Lucas
The Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company (NDPHC), Jennifer Adighije, an engineer, has called for the optimisation of Nigeria’s electricity infrastructure as a critical pathway to unlocking the country’s socio-economic transformation, saying reliable power remains the foundation for industrialisation, investment and sustainable national development.
Adighije made the call while delivering the Distinguished Alumni Lecture organised by the Department of Electrical and Electronics Engineering, Faculty of Engineering, University of Lagos (UNILAG), recently. The lecture was titled: “Optimising Electricity for Powering Nigeria’s New Socio-Economic Frontiers.”
According to Adighije, electricity has become the “currency of development” in today’s global economy, stressing that nations with reliable and affordable power supply are better positioned to create jobs, attract investments, drive industrialisation, strengthen healthcare and education systems, and improve the overall quality of life of their citizens.
She noted that the Electricity Act 2023 represents one of the most significant reforms in Nigeria’s power sector by granting states the authority to establish and regulate their own electricity markets.
“The legislation has created unprecedented opportunities for investment, innovation, competition and improved service delivery while accelerating the emergence of vibrant sub-national electricity markets capable of attracting greater private-sector participation,” she said.
Adighije said NDPHC is repositioning itself to maximise the value of its assets by improving operational efficiency, strengthening corporate governance, fostering strategic partnerships and ensuring that investments in the power sector translate into tangible benefits for Nigerians.
She reaffirmed the company’s commitment to supporting the ongoing transformation of the Nigerian Electricity Supply Industry (NESI) through efficient asset management and infrastructure optimisation.
Looking ahead, the NDPHC chief expressed confidence in the next generation of engineers, saying they would play a leading role in deploying smarter electricity grids and cleaner, technology-driven energy systems powered by artificial intelligence, automation, battery storage, smart metering and advanced power electronics.
She urged engineering students to embrace continuous learning, maintain professional discipline and see engineering as a vocation committed to solving societal challenges and building infrastructure that supports economic growth.
Adighije concluded that Nigeria’s electricity sector is entering a new era characterised by reform, innovation, collaboration and increased investment, emphasising that optimising electricity is essential to powering homes, industries and businesses while unlocking the country’s enormous socio-economic potential.
In her opening remarks, the Vice-Chancellor of the University of Lagos, Professor Folasade Ogunsola, described the lecture as a celebration of excellence, collaboration and the enduring legacy of UNILAG.
She commended Adighije as one of the University’s distinguished alumni whose professional accomplishments reflect the institution’s commitment to producing graduates with technical competence, integrity and visionary leadership.
Ogunsola noted that the rapid technological changes associated with the Fourth Industrial Revolution have made stronger partnerships among academia, industry and government increasingly important.
“Through initiatives such as this, we create platforms where experience meets aspiration and where our students are inspired by those who have successfully translated knowledge into impactful service,” she said.
The lecture attracted academics, industry professionals, students and stakeholders from Nigeria’s power sector, providing a platform for robust discussions on electricity sector reforms, innovation and the critical role of engineering in driving the country’s economic development.
Energy
Sahara Upstream boost OML 18 capacity with 380,000-barrel MT D Adesanya
By MonireOluwa Lucas
Sahara Upstream has deployed MT D Adesanya, a 380,000-barrel Medium Range (MR) tanker, to enhance crude oil evacuation capacity at OML 18, strengthen operational efficiency and advance sustainability across its marine logistics operations.
The vessel, which has a capacity of more than 62,000 cubic metres of crude oil, will serve as an additional mother vessel for OML 18 crude evacuation operations, complementing MT D Bayero and expanding the infrastructure supporting one of Nigeria’s key upstream assets.
Stationed at Bonny Anchorage, MT D Adesanya will receive crude from shuttle vessels operating within the field before onward transfer to the Floating Storage and Offloading (FSO) Cawthorne facility. It is expected to improve turnaround times by enabling shuttle vessels to discharge more quickly and return to loading operations, enhancing evacuation efficiency, increasing throughput and reducing potential operational bottlenecks.
Speaking on the deployment, Chief Value Officer, Sahara Upstream, Dr. Tosin Etomi, described MT D Adesanya as a significant investment in capacity, resilience and long-term value creation.
“The deployment of MT D Adesanya reinforces our commitment to building the capacity required to support sustainable production growth. By strengthening our evacuation infrastructure, we are enhancing operational reliability, improving efficiency and creating the flexibility needed to support increasing production volumes today and in the future,” he said.
Etomi noted that investments in critical energy infrastructure play an important role in supporting economic growth across Nigeria and the African continent.
“Efficient evacuation systems are essential to maximizing the value of our energy resources. By strengthening capacity and improving reliability, we are contributing to greater export efficiency, supporting economic activity and helping to position Nigeria and Africa to unlock even greater opportunities from their energy resources,” he noted.
Beyond its operational benefits, the vessel also supports Sahara Upstream’s commitment to sustainability by improving the efficiency of marine logistics operations.
“Improved vessel utilisation, reduced waiting times and shorter idle periods translate into a more efficient evacuation system. These gains not only enhance operational performance but also support our sustainability objectives by reducing unnecessary fuel consumption and emissions associated with prolonged vessel downtime,” he explained.
Etomi added that the deployment aligns with Sahara’s Beyond XXX vision, which focuses on making bold, future-facing investments that deliver lasting impact.
“Beyond XXX is about investing today for the opportunities of tomorrow. MT D Adesanya reflects that mindset. It strengthens our current operations while building the resilience, capacity and sustainability required to support the future of energy in Africa.”
For Sahara, the arrival of MT D Adesanya, following the deployment of FSO Cawthorne and the expansion of innovative oilfield services through Arahas Global Oilfield Services, marks another milestone in the organisation’s commitment to operational excellence, responsible growth and strategic investments that create long-term value.
Named in honour of the late Debola Adesanya, who led Sahara’s Kenya operations and contributed significantly to the organization’s growth across East Africa prior to his passing on May 1, 2026, the vessel represents both a strategic investment in the future of energy and a lasting tribute to a respected colleague whose leadership left an enduring impact across the Sahara ecosystem.
Executive Directors, Tope Shonubi and Wale Ajibade, said the vessel also serves as a fitting tribute to the late Adesanya, whose resilience, leadership and friendship left an indelible mark on the Sahara ecosystem.
“Debola was one of the most resilient colleagues and friends we have ever known. This vessel ensures that his legacy continues to inspire future generations. As we reflected during his funeral, the day you are born, you begin to die, but it is how you live between birth and death that defines how you are remembered. Through this strategic asset, Debola’s memory will continue to power progress across Nigeria, Africa and beyond,” Shonubi said.
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