Kehinde Fajobi
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned oil producers that crude oil meant for local refineries must be supplied as required before any exports will be permitted.
In a statement issued in Abuja, the commission said it would block export permits for crude cargoes originally designated for domestic refining unless companies meet their local supply obligations.
The regulator emphasised that any changes to these allocations must be expressly approved by the Commission Chief Executive (CCE), Engr. Gbenga Komolafe.
“In a letter dated February 2, 2025, addressed to exploration and production companies and their equity partners, the Commission Chief Executive (CCE), Engr. Gbenga Komolafe reiterated that diverting crude oil meant for local refineries violates the law,” NUPRC said.
The warning follows a meeting last weekend involving over 50 key industry players, where refiners and producers blamed each other for inconsistencies in implementing the Domestic Crude Supply Obligation (DCSO) policy.
“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,” the statement read.
The commission cautioned against further violations and urged refiners to adhere to international best practices in procurement and operations.
It also reminded producers that any deviation from the DCSO policy must receive prior approval from the CCE to prevent abuse.
Komolafe cited Section 109 of the Petroleum Industry Act (PIA) 2021, which mandates a stable supply of crude to domestic refineries for national energy security. He said NUPRC would strictly enforce compliance with the policy.
He added that the commission has already implemented regulatory measures, including the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023 and a framework to guide the policy’s execution.