The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a stern warning to oil producers and refiners, stating that it will deny export permits for crude oil cargoes intended for domestic refining if they fail to fulfill their domestic crude obligations.
In a letter dated February 2, 2025, Commission Chief Executive Engr. Gbenga Komolafe emphasized that diverting crude oil meant for local refineries is a violation of the law.
He referenced Section 109 of the Petroleum Industry Act (PIA) 2021, which aims to ensure a stable supply of crude oil to domestic refineries and strengthen the nation’s energy security.
The warning comes after a meeting between NUPRC, producers, and refiners, where both parties blamed each other for inconsistencies in implementing the Domestic Crude Supply Obligation (DCSO) policy.
Producers claimed refiners failed to meet commercial and operational terms, while refiners alleged producers preferred to sell crude outside the country.
To address these issues, NUPRC advised refiners to adhere to international best practices and reminded producers to obtain express permission from the Commission Chief Executive before selling crude outside the agreed framework.
Engr. Komolafe stressed that NUPRC will strictly enforce the policy, and significant regulatory actions have already been taken to ensure compliance.
These actions include developing and signing the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023.
The Commission will monitor compliance through monthly meetings with upstream operators, tracking production metrics to facilitate discussions on supply commitments to refineries.
NUPRC warned that violating laws governing domestic crude supplies will no longer be tolerated, as it has implications for the country’s energy security.