The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a stern warning to oil production companies, demanding strict adherence to their crude oil supply commitments to local refineries. The commission cited ongoing disputes between refiners and producers regarding the implementation of the Domestic Crude Supply Obligation (DCSO) policy. NUPRC CEO Gbenga Komolafe threatened to deny export permits for crude intended for domestic refining if companies fail to meet their obligations. He also emphasized the importance of adhering to the DCSO policy and the penalties for non-compliance, highlighting the potential impact on Nigeria's energy security.
The Nigeria n Upstream Petroleum Regulatory Commission has warned oil production companies to strictly adhere to crude oil supply obligations to local refineries.
“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.”
Citing Section 109 of the Petroleum Industry Act 2021, Komolafe said NUPRC will now strictly enforce the policy and penalise defaulters. “Also, during monthly meetings with upstream operators, NUPRC monitors compliance with production metrics that provide insight into available crude volumes two months in advance, facilitating discussions regarding supply commitments to refineries.”
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