NUPRC Intervenes Orders IOCs to Sell Crude Oil Locally

NUPRC Intervenes Orders IOCs to Sell Crude Oil Locally: The Nigerian Upstream

Petroleum Regulatory Commission (NUPRC) has announced that it will compel

international oil companies (IOCs) to supply crude oil to the Dangote oil refinery and other domestic refineries.

This decision comes after the Dangote Group’s chairman claimed that IOCs were unwilling to sell crude to the refinery.

The NUPRC spokesperson, Olaide Shonola, confirmed that the commission would issue clear directives to IOCs to mandatorily sell crude to Dangote and other refineries.

Shonola emphasized that the NUPRC would continue engaging with IOCs to ensure compliance, but declined to comment on potential sanctions.

Aliko Dangote had stated that IOCs prefer exporting crude for foreign exchange and are reluctant to stop. However, he acknowledged

that the Nigerian National Petroleum Company Ltd is making efforts to supply feedstock to the refinery.

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Dangote emphasized that Africa’s growth is hindered by exporting raw materials and importing finished goods,

leading to a significant price disparity. He expressed pride in demonstrating the feasibility of refining and distributing

crude oil in Africa, which would reduce CO2 emissions and minimize reliance on foreign imports.

The NUPRC’s mandate is in line with its April directive requiring oil producers to prioritize domestic refineries over foreign demands.

This move aims to enhance Nigeria’s energy security and reduce dependence on imported petroleum products.

The Dangote refinery, with a capacity of 650,000 barrels per day, is expected to significantly contribute to the country’s refining capabilities.