Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has cautioned that it will deny export permits for crude oil cargoes meant for domestic refining if oil firms do not fulfil their domestic crude obligations.

The commission’s chief executive, Gbenga Komolafe, stated this in a statement on Monday, February 3, 2025, saying that any changes to cargoes meant for local refining must receive immediate approval from the NUPRC.

According to the letter dated February 2, 2025, to oil exploration and production companies and their equity partners, the NUPRC’s boss said that diverting crude meant for local refineries negates the law.

The upstream regulator said the refiners and producers blame each other for inconsistencies in implementing the Domestic Crude Obligation (DCSO) policy.

The commission said that the situation has led to refiners claiming not to meet supply terms and resorting to selling their crude outside, leading to them sourcing for feedstock elsewhere.

However, the NUPRC said that the producers countered the refiners’ claims, saying they hardly meet commercial and operational obligations, forcing them to explore markets elsewhere to avoid operational bottlenecks.

NUPRC warned against further breaches from the parties, stressing the need for refiners to abide by international best practices and operational guidelines.

The upstream regulator said producers must vary the conditions contained in the policy without getting expression permission before selling crude outside the agreed guideline.

The shortage of crude oil has led some Nigerian refineries to resort to importation.

A previous report by Legit.ng disclosed that the 650,000 bpd-capacity Dangote Refinery imported about 12 million barrels from the US due to a shortage of local supplies.

According to the report, the facility expects the cargo consignment this month as it plans to ramp up production.

The refinery had said it plans to reach full production capacity in June as it currently processes about 500,000 barrels daily.

Additionally, the Nigerian National Petroleum Company Limited (NNPC) has refuted reports that it plans to reduce crude oil supply to the mega refinery.

NNPC’s spokesman, Olufemi Soneye, told Legit.ng that the alleged planned crude reduction is false.

The Dangote Refinery currently receives about 350,000 barrels of crude per day from the 450,000 earmarked for the domestic market.

Legit.ng earlier reported that the NNPC and oil marketers imported over 633 million litres of petrol and diesel in January 2025 despite the presence of Dangote, Warri and Port Harcourt refineries.

According to data on PMS and diesel imports by the companies, they brought in over 458 million litres of PMS and 174 million litres of diesel in one month.

Some dealers said the move was to address domestic fuel shortages. Experts argue that the $20 billion Dangote Refinery could meet Nigeria’s needs.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

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Source: Legit.ng