The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reaffirmed its commitment to implementing the Domestic Crude Supply Obligation (DCSO).
The DCSO is a key policy aimed at ensuring domestic energy security in Nigeria.
The Petroleum Industry Act 2021 (PIA) empowers NUPRC to impose the DCSO on upstream operators, licensees and lessees with the power to mandate the allocation of a specified percentage of their produced crude oil and condensate for sale in the domestic market.
The latest resolution followed a high-level meeting between the Commission’s Chief Executive, Mr Gbenga Komolafe, and representatives of the Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG)
The discussions focused on addressing industry concerns and ensuring the seamless enforcement of the DCSO.
NUPRC’s resolve to enforce the domestic crude supply obligation is aimed at addressing the current challenges of availability of feedstock for local refiners.
Due to several obligations and issues around production challenges, it is providing difficulties for local refiners to get the needed feedstock at a time when Nigeria is looking to cut imports.
Mr Komolafe emphasized the importance of upholding the Petroleum Industry Act, PIA, 2021 and maintaining regulatory clarity.
He noted that the DCSO regulation, developed in collaboration with stakeholders, provides clear guidelines under Section 109 of the PIA.