The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled a template to ensure seamless domestic crude oil supply obligation, noting that the new guideline has created the option of paying for domestic crude in naira.
Engr Gbenga Komolafe, the commission’s chief executive, who unveiled the new template at a press conference in Abuja, said the guidelines had become functional and covered all relevant areas of operations in the sector.
Komolafe said, “The template has become effective because parties have committed to it and signed on it, and it has become statutorily enforceable.”
Areas which the template deals with, according to Komolafe, include legal framework, procedure for implementation of Domestic Crude Oil Supply Obligations (DCSO), procedures for crude oil requirement and allocation, payment instrument, currency of payment, logistics scheduling, continuous obligation, crude oil diversion and defaults.
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Speaking on the basis for allocation, Komolafe said, “The approach starts with the NMDPRA capturing the domestic volume required and transmitting the same to the NUPRC on quarterly basis to enable future planning.
“The NUPRC will then analyse the figure against actual daily production and factor in the volume that requires producers to commit to base on actual production capacities.”
The NUPRC also released the current status of the Nigerian crude oil and gas reserves which shows that the combined crude oil and condensate reserves stand at 37.50 billion barrels, while the associated gas and non-associated gas reserves stood at 209.26 trillion Cubic Feet (TCF) as at January 1, 2024.
Komolafe said crude oil and condensate reserves stood at 31.56 billion barrels and 5.94 billion barrels respectively, amounting to a total of 37.50 billion barrels, while associated gas and non-associated gas reserves stood at 102.59 TCF and 106.67 TCF respectively, resulting in total gas reserves of 209.26 TCF as at January 1, 2024.
