Nigeria to Compel Oil Corporations to Promote Crude to Home Refineries | Mint

Beneath the rules seen by Bloomberg Information, all oil corporations within the West African nation might be obliged to supply crude for home refiners that may’t independently supply provides regionally. Producers are solely entitled to export crude after assembly their home provide obligations, in keeping with the Nigerian Upstream Regulatory Fee’s measures, which can see the brand new, large Dangote Refinery getting extra of its crude regionally.

Learn extra: Oil Corporations Balk at Nigeria’s Push to Promote Crude in Native Forex

Native refiners in Africa’s largest crude producer have complained of being starved of feedstock by oil corporations, which choose exports to earn {dollars} and keep away from the danger of holding a weakening native foreign money. Along with the 650,000-barrels-a-day Dangote Refinery, there are no less than 5 operational modular refineries in Nigeria producing diesel and kerosene in addition to the state-owned Port Harcourt refinery that can be anticipated to come back on stream this yr.  

The Dangote Refinery has lately been importing US crude after getting its preliminary provides from the Nigerian Nationwide Petroleum Growth Co. Ltd. It lately purchased one supertanker of WTI Midland from PetroChina for Might 1-10 arrival, merchants with data of the matter stated.

The NUPRC will act as an middleman between native refiners and producers the place a deal can’t be reached on crude provide and facilitate a gross sales buy settlement on a willing-buyer, willing-seller foundation. Funds for crude to home refiners could be in {dollars} or naira or each, in accordance the rules.

The regulator stated it goals to begin the Home Crude Oil Provide Obligation measure within the second half of the yr. The quantity that every refinery might want to take hasn’t been set but. 

–With help from Invoice Lehane.

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Revealed: 15 Apr 2024, 11:02 PM IST