The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that it will no longer grant export permits for crude oil cargoes meant for domestic refining because oil companies are unable to meet the demand for crude oil by local refineries.
The Commission said in a statement in Abuja that changes to cargoes designated for domestic refining must be approved by the Commission Chief Executive.
It stated “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.”
“At a meeting last weekend, attended by more than 50 critical industry players, both the refiners and producers blamed each other for the inconsistencies in the implementation of the Domestic Crude Supply Obligation (DCSO) policy. They, however, agreed that the regulator has put in place appropriate measures for effective implementation.
“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 refiner hardly met commercial and operational terms, forcing them to explore other markets elsewhere to avoid unnecessary operational bottlenecks.”
CCE cited Section 109 of the Petroleum Industry Act (PIA) 2021, which aims to ensure a stable supply of crude oil to domestic refineries and strengthen the nation’s energy security, and said that NUPRC will going forward strictly enforce the policy regarding implementation and defaults by oil companies.
Before selling crude outside of the agreed framework, producers are reminded by the Commission not to alter the conditions stated in the DCSO policy without first obtaining express permission from the CCE.