The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that it will deny export permits for crude oil cargoes intended for domestic refining, if oil companies do not fulfill their domestic crude obligations.
The Commission Chief Executive (CCE), Mr Gbenga Komolafe, insisted that any changes to cargoes designated for domestic refining must receive express approval from the commission.
Komolafe, in a letter dated Feb. 2, 2025, addressed to exploration and production companies and their equity partners, reiterated that diverting crude oil meant for local refineries violates the law.
At a recent meeting, attended by more than 50 critical industry players, both the refiners and producers blamed each other for the inconsistencies in the Domestic Crude Supply Obligation (DCSO) policy implementation.
They, however, agreed that the regulator has put in place appropriate measures for effective implementation.
The refiners had 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.
Komolafe, therefore, cautioned against any further breaches from either party, and advised refiners to adhere to international best practices in procurement and operational matters.
indeed producers not to vary the conditions stated in the DCSO policy without obtaining express permission from the commission before selling crude outside the agreed framework, to avoid abuse.
According to Komolafe, the commission will henceforth strictly enforce the policy regarding implementation and defaults by oil companies.
