DOMESTIC CRUDE SUPPLY: NUPRC WARNS PRODUCERS AND REFINERS AGAINST DIVERSION 02-02-25
By Sadiq Aminu The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that it will henceforth deny export permits for crude oil cargoes intended for domestic refining, if oil companies do not fulfill their domestic crude obligations.
The commission insists that any changes to cargoes designated for domestic refining must receive express approval from the Commission Chief Executive.
In a letter dated February 2, 2025, addressed to exploration and production companies and their equity partners, the Commission Chief Executive (CCE), Gbenga Komolafe reiterated that diverting crude oil meant for local refineries violates the law.
At a meeting last weekend, attended by more than 50 critical industry players, both the refiners and producers blamed each other for the inconsistencies in the implementation of the Domestic Crude Supply Obligation (DCSO) policy. They, however, agreed that the regulator has put in place appropriate measures for effective implementation.
“While the refiners claimed that producers were not meeting supply terms and preferred to sell their crude outside, forcing them to look elsewhere for feedstock, the producers countered that refiners hardly met commercial and operational terms, forcing them to explore other markets elsewhere to avoid unnecessary operational bottlenecks.”