NUPRC vows sanctions on oil producers violating Domestic Crude Supply Obligation (DCSO) under the PIA.It warns that export permits will be denied if domestic supply obligations are not met.The Nigerian government has issued a stern warning, stating that it will no longer permit crude oil producers to export their cargoes if they fail to meet their domestic supply commitments.
Emphasizing its commitment to ensuring local refineries receive the required crude oil allocations, the government warned that any producer neglecting its Domestic Crude Supply Obligation (DCSO) will face strict enforcement measures. This move aligns with the provisions of the Petroleum Industry Act (PIA), which prioritizes domestic refining before allowing crude exports.
NUPRC Chief, Gbenga Komolafe, warned oil producers against diverting crude meant for local refineries, stressing legal consequences.Despite regulations ensuring local supply, refineries, including Dangote’s and modular ones, report shortages.
Some oil firms prioritize exports for higher profits, while limited local production adds to the challenge.NUPRC held a weekend meeting with over 50 industry players to resolve feedstock supply issues for local refineries.Refiners accused producers of prioritizing exports, while producers blamed refiners for not meeting commercial terms.
The regulator warned against further breaches, urging refiners to follow best practices and producers to adhere to DCSO policy without unauthorized changes.Komolafe cited Section 109 of the PIA, ensuring stable crude supply for domestic refineries and energy security.NUPRC monitors compliance with production metrics to ensure timely supply commitments to refineries.
Komolafe warned that any diversion of crude meant for local refineries is illegal and will result in the denial of export permits for such cargoes. He emphasized the impact of such violations on national energy security.
