IOCs crude supply to local refineries based on willing buyer/willing seller basis — NUPRC
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clarified that, although the Petroleum Industry Act (PIA) mandates International Oil Companies (IOCs) and other producers to sell crude oil to local refineries like Dangote, the pricing is determined on a willing-buyer/willing-seller basis.
The Chief Executive Officer of the Commission, Engineer Gbenga Komolafe, made this remark during an interview on Monday when reacting to allegations by Dangote Refinery that International Oil Companies (IOCs) are refusing to sell and supply crude oil to its massive refinery in Lagos.
Aliko Dangote had recently accused the IOCs of deliberately refusing to supply it with crude, forcing the refinery to depend more on international suppliers.
Dangote also said the federal government is not doing enough to protect the refinery from manipulative pricing from foreign oil companies.
Komolafe further clarified that the IOCs are making crude oil available for interested buyers, and the product is abundant.
“Yes, in recognition of the provisions of the Petroleum Industry Act (PIA) that make the supply of crude to domestic refineries obligatory, the commission has enforced that. The issue is not that the IOCs or other producers are refusing to make crude available.
“To the best of the knowledge of the commission, there is nothing like IOCs being too big or not complying with their statutory obligations to make crude oil available.
“Making the crude available is done at a price and the provisions of the law is that it should be done on a willing-buyer, willing-seller basis. No producer is refusing to make crude available to the Dangote refinery,” Komolafe said.
Recently, the federal government, through the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), reached an agreement with producers to permit the sale of crude oil to domestic refiners at market prices.
This resolution ends a supply dispute that has strained relations with international oil companies. In addition, NUPRC requested monthly cargo price quotes on crude oil supply and delivery from both producers and refiners.
The NUPRC said it aims to balance upstream development with a sustainable domestic energy supply chain, reinforcing its role in fostering a fair and profitable oil production environment.
