NUPRC: We’ll ensure IOCs supply sufficient crude oil to Dangote refinery

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says talks are ongoing with international oil companies (IOCs) to ensure they meet domestic crude oil supply obligations.

On June 3, Aliko Dangote, Africa’s richest person, said some IOCs are struggling to supply crude to his refinery.

Speaking to TheCable on Wednesday, Olaide Shonola, NUPRC spokesperson, said the organisation has been engaging with oil companies operating in Nigeria to ensure they supply the refinery.

“We have been engaging with them for a long time. We have had several engagements with the oil companies to see how they can assist to make crude oil supply obligations,” she said.

“It is an obligation, so we expect them to try their best, which is what we are doing as regulators to engage them to ensure they do that.”

In April, the corporation issued new rules requiring oil producers to sell crude to domestic refineries before attending to foreign demands.

According to the guidelines, NUPRC will function as an intermediary between local refiners and producers in cases where a deal can not be reached on crude supply — facilitating a purchase agreement on a willing buyer, willing seller model. 

The regulator said it plans to implement the domestic crude oil supply obligation measure in the second half of the year.