Nigeria Unveils Domestic Crude Oil Supply Template, Boosting Refinery Collaboration
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has taken a significant step towards a more self-reliant petroleum industry by unveiling a new Domestic Crude Oil Supply Obligation (DCSO) template. This framework aims to strengthen collaboration between oil producers and domestic refineries.
NUPRC Chief Executive, Gbemga Komolafe, announced the template during a media briefing in Abuja. He highlighted Nigeria’s growing oil reserves, with crude oil reaching 31.56 billion barrels and condensate reserves at 5.94 billion barrels, for a combined total of 37.50 billion barrels.
Komolafe expressed optimism that the DCSO template will foster increased synergy between local refineries and oil producers in the second half of 2024. This collaboration is expected to create a more robust and self-sufficient petroleum sector in Nigeria.
The guidelines address key areas such as implementation procedures for DCSO, allocation methods for domestic crude oil requirements, payment methods and currency, logistics scheduling, and potential sanctions for crude oil diversion.
“The Commission, in collaboration with relevant stakeholders like NNPC Upstream Investment Management Services (NUIMS), representatives of oil producers, the Crude Oil Refinery-Owners Association of Nigeria (CORAN), and Dangote Petroleum Refinery, developed this template to ensure a smooth DCSO implementation and consistent supply of crude oil to domestic refineries,” explained Komolafe.
He emphasized that this strategic initiative aligns with the current administration’s policies and President Bola Ahmed Tinubu’s commitment to making Nigeria more business-friendly. The President’s recent fiscal policy changes aim to remove investment barriers in the oil and gas sector. The DCSO template further supports Nigeria’s goal of bolstering domestic refining capacity and ensuring the long-term sustainability of its oil industry.
“This template offers a transparent framework that encourages collaboration among stakeholders for a thriving energy sector,” concluded Komolafe. “The unveiling of the Domestic Crude Oil Supply Obligation template marks a significant development, paving the way for a more collaborative and self-sufficient petroleum landscape in Nigeria for the latter half of 2024.”
