- The Nigerian Upstream Petroleum Regulatory Commission warns oil companies that failing to meet domestic crude supply obligations will result in export permit denials
- NUPRC emphasizes that crude for local refineries must not be diverted without approval, aiming to strengthen Nigeria’s energy security
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned oil companies that failure to meet domestic crude supply obligations will result in export permit denials.
In a letter dated February 2, Engr. Gbenga Komolafe, the Commission Chief Executive (CCE), emphasized that crude designated for local refineries must not be diverted without approval. Any changes must receive explicit consent from the commission.
At a recent meeting attended by over 50 key industry players, refiners and producers blamed each other for supply inconsistencies. Refiners accused producers of prioritizing exports, forcing them to seek alternative feedstock.
On the other hand, producers argued that refiners often failed to meet commercial and operational terms, leading them to explore other markets.
To address the issue, the regulator has put measures in place to enforce compliance. It urged refiners to follow global best practices in procurement and operations while warning producers against altering agreed supply conditions without prior approval.
Citing Section 109 of the Petroleum Industry Act (PIA) 2021, Komolafe stressed that NUPRC will strictly implement the Domestic Crude Supply Obligation (DCSO) policy. This law ensures a stable crude supply to local refineries, strengthening Nigeria’s energy security.
The commission has already introduced regulatory measures, including the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023, along with a detailed framework for enforcement.
Moving forward, oil companies that fail to comply with domestic supply commitments will face stringent regulatory actions.
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