The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has ordered exploration and production companies to strictly implement the Crude Oil Supply Obligations (DICSO) to local refineries.
The regulator plans a heavy sanction on companies defaulting in their obligations as well as diverting crude oil meant for local refineries, according to the directive issued by the Commission Chief Executive, Engr. Gbenga Komolafe.
The directive on Sunday was issued in a circular with reference: NUPRC/OOECDP/GEN.CORR./Vol.5, titled, ‘Strict Compliance to Domestic Crude Supply Obligation,’ obtained by THE WHISTLER.
It said, “You are hereby invited to refer to Section 109 of the Petroleum Industry Act (PIA) 2021 which introduces the DCSO in the bid to ensure adequate crude oil supply to local refineries to guarantee national energy security.
“Pursuant to Section 109(2) of the PIA 2021, the Commission has taken the following critical regulatory actions to ensure the implementation and compliance with the DCSO:
“The Commission developed and signed the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023 pursuant to provisions Section 109(2) of the PIA 2021.
“The development of DCSO framework and procedure guide to guide its implementation.
“In the monthly curtailment meetings with the Upstream operators, the Commission ensures compliance with the developed production metrics templates which entrench visibility on available volumes usually two months ahead of the current month (M+2) for refiners to progress discussions on delivery of such volumes to the refineries.”
The NUPRC further warned against the diversion of crude cargo designated for local refineries.
NUPRC added, “Kindly note that the diversion of crude cargo designated for domestic refineries is a contravention of the law and the Commission will henceforth disallow export permits for designated crude cargos for domestic refining.
“All cargoes designated for domestic refining can only be varied with the express approval of the Commission Chief Executive. The above is for your strict compliance, please.”
THE WHISTLER had report that the NUPRC estimated that the Port Harcourt Refinery, Dangote Refinery, Warri Refinery and other functional refineries will receive 123,480,500 barrels of crude oil between January to June 2025 which is the total crude requirement of refiners during the period.
A breakdown showed that the Dangote Refinery and Petrochemicals requires 99,550,000 barrels from January to June 2025. The refinery’s daily requirement is 550,000 mbpd while the monthly requirement is 17.05 million barrels.
The Warri Refinery has the second highest requirement estimated at 13,5875,000 barrels in the first half while the daily and monthly requirements are 75,000bpd and 2.325 million barrels respectively.
The Kaduna Refinery and Petrochemical Company Ltd have an estimated requirement of 3,960,000 barrels. The refinery’s daily requirement is 66,000bpd and 1,980,000 barrels.
Port Harcourt Refinery Company Ltd (Old) has a daily requirement of 60,000 barrels per day, monthly requirement of 1,860,000 barrels and a half year requirement of 2,868,000 barrels.
Port Harcourt-based Aradel Refinery is estimated to consume 1,267,000 barrels in the first half of 2025, while the daily need of refinery is 11,000bpd and 215,000 barrels monthly.
Diversion Of Crude Oil Designated For Domestic Refineries Illegal, Will Attract Regulatory Sanction, NUPRC Warns is first published on The Whistler Newspaper
Source: The Whistler
