NUPRC Set To Compel Supply Of Crude To Private Refineries

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that it is taking all necessary steps within the prescriptions of the Petroleum Industry Act (2021) to ensure an adequate and consistent supply of feedstock to private refineries to enable them commence production.

It has therefore warned that there would be consequences for sabotaging the process.

The NUPRC in a statement issued by (Mrs) Shonola Olaide, Head, Public Affairs and Corporate Communications said that the pre-emptive steps were being taken in order not to send wrong and unbecoming signals to the international business community.

She said that it would be wrong if operators of domestic refineries in one of the world’s largest crude oil-producing countries were to start importing feedstock for their production.

She said:

“It was in contemplation of this that Section 109 of the Petroleum Industry Act (PIA) 2021 introduced the Domestic Crude Supply Obligation (DCSO) to Nigeria’s oil industry in a bid to ensure that domestic refineries are not starved of crude oil supply for their operation.

“The Commission has already taken some steps in furtherance of this goal by developing and signing the Production Curtailment and Domestic Crude Oil Supply Obligation (PC&DCSO) Regulation 2023, in line with the provisions of Section 109(2) of the PIA 2021, preparing for approval and implementation the DCSO framework and procedure guide, processing of application for refinery feedstock approval, requesting all oil producing companies to provide information on their planned crude oil off-take and existing sales purchase agreement, and advising the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to furnish it with the domestic crude oil requirement of refineries in operation.

“NUPRC is determined to take further necessary steps required to avoid inadequate supply of crude oil to domestic refineries and would not hesitate, where necessary, to enforce the stipulated penalties for violations and non-compliance to the provisions of the Act. In pursuance to Section 109(2) of the PIA, the Commission gazetted the PC&DCSO Regulations which provides clarity on the obligations of the stakeholders.”

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