“There'll be Consequences”: FG Moves to Force Oil Firms to Supply Crude to Dangote, Other Refineries
- The Nigerian government said it would force the 52 oil-producing companies to supply crude to emerging refineries
- The Nigerian Upstream Petroleum Regulatory Commission (NURPC) said that the move would ensure local refineries were not starved of crude
- The agency said it would liaise with other agencies to obtain the crude oil requirements of the new refineries in operation
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The Nigerian Upstream Petroleum Regulatory Commission (NURPC) said on Saturday, October 28, 2023, that it will take all the required steps within the Petroleum Industry Act 2021 to ensure enough and regular supply of crude oil to upcoming refineries in Nigeria.
The Commission summoned a meeting with 52 crude oil exploration and production companies to ensure the ramping up of feedstock for new refineries in Nigeria.
Source: Getty Images
FG to penalise oil companies for not supplying crude to local refineries
The Commission’s Head of Public Affairs and Corporate Communications, Olaide Shonola, warned in a statement that there would be consequences for undermining the process.
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The Commission stated that it would send a wrong signal to international business communities if domestic refineries began importing crude oil.
ThisDay reports that NURPC said it would advise its sister agency, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to supply it with the domestic crude oil requirements of the existing refineries.
The regulatory agency stated that it was thinking of the inadequate supply of crude oil to the refineries provided for by PIA for domestic crude supply obligation to Nigeria’s oil industry to ensure domestic refineries were not starved of crude oil supply.
New refineries emerge in Nigeria
Legit.ng reported that many modular refineries began operation recently and started a campaign to draw attention to the scarcity of crude oil supply in their facilities.
Reports say that Dangote Refinery has hinted at plans to import crude oil for its 650,000-capacity refinery as it begins operation in November.
According to NUPRC, it had already begun taking steps to enforce crude oil supply to local refineries.
The Commission stated that the move would include preparation for the approval and implementation of the DCSO framework and guide, application processing for refinery feedstock approval, and requesting all oil-producing firms to provide information on their planned crude oil take-off and existing sales purchase agreement.
OPEC says new refineries coming up in Nigeria to rival Dangote lift sales, one produces 20,000bpd
Legit.ng reported that The Organisation of Petroleum Exporting Countries (OPEC) has revealed that Nigeria is about to witness the establishment of small modular refineries with 20,000 bpd capacity in the medium term.
The group revealed this in its World Oil Outlook, launched in Saudi Arabia.
The Outlook says Africa will see a medium-term distillation capacity of 1.2 million barrels daily.
Source: Legit.ng
