By Nigeria Directs Oil Companies To Supply Local Refineries Before Export
Ghazali Ibrahim
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a directive mandating oil exploration and production companies to strictly comply with the Domestic Crude Supply Obligation (DCSO) to ensure a steady supply of crude oil for local use.
The directive, signed by the Commission Chief Executive, Engr. Gbenga Komolafe, warns of severe sanctions against companies that fail to meet their obligations or divert crude meant for domestic use.
The commission, in a circular titled “Strict Compliance to Domestic Crude Supply Obligation” (NUPRC/OOECDP/GEN.CORR./Vol.5), cited Section 109 of the Petroleum Industry Act (PIA) 2021, which mandates oil producers to supply crude to local refineries to enhance national energy security.
To enforce compliance, NUPRC has developed and implemented the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023 in line with Section 109(2) of the PIA.
Additionally, a DCSO framework and procedure guide has been introduced to ensure seamless execution.
The commission also monitors upstream operators monthly to guarantee that production volumes are allocated for local refineries at least two months in advance.
The NUPRC further warned oil companies against diverting crude designated for Nigerian refineries. Any attempt to export such crude without approval will result in the denial of export permits.
The directive stated that all cargoes designated for domestic refining can only be reassigned with express approval from the Commission Chief Executive.
Between January and June 2025, Nigeria’s refineries are expected to receive a total of 123.48 million barrels of crude oil to meet refining needs.
