The federal government, through the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), has reached an agreement with producers to permit the sale of crude oil to domestic refiners at market prices.
This resolution ends a supply dispute that has strained relations with international oil companies.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) stated that it could not allow pricing issues to hinder domestic refining.
The NUPRC emphasized its commitment to preventing “crude supply profiteering,” while also ensuring that oil production remains profitable.
He said, “We will never allow price strangulation to disincentivise our domestic refining capacity optimisation”
He stated that the regulator would work to prevent “crude supply profiteering,” while also ensuring that oil production remains profitable.
To ensure transparency, the Chief Executive of the NUPRC Gbenga Komolafe requested monthly cargo price quotes on crude oil supply and delivery from both producers and refiners.
He emphasized that it is the regulator’s responsibility to balance upstream development with a sustainable domestic energy supply chain.
Backstory
Earlier in the year, the NUPRC directed local and international oil companies to prioritise the supply of crude oil to local refineries. The regulator further set a target of 483,000 barrels to local refineries with the Dangote refinery expected to receive 325,000 barrels daily.
Additional refineries expected to benefit from the crude oil supply include the Warri and Port Harcourt refineries, which are slated to receive 75,000 and 54,000 barrels of crude oil per day, respectively. Meanwhile, smaller refineries such as Waltersmith, OPAC, and Niger Delta Petroleum Refinery, among others, are set to receive 10,000 barrels per day or less.
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