FG settles IOCs/domestic refiners’ crude supply dispute

The federal government, through the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), has resolved the supply dispute between international oil companies (IOCs) and domestic refiners.

The commission reached an agreement with producers to permit the sale of crude oil to domestic refiners at market prices.

The producers under the aegis of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce Industry (LCCI) at the instance of the NUPRC agreed to a mutually beneficial framework that would not strangulate the local refiners.  

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The parties made the commitment at a virtual meeting convened by the commission’s chief executive, Gbenga Komolafe, with the OPTS on the status review of the Framework for Seamless Operationalisation of Domestic Crude Oil Supply Obligation Template on Thursday.

The meeting, it was gathered, was part of efforts to effectively implement key sections of the Petroleum Industry Act, especially pricing and crude supply to the domestic refineries.

“We need to have the price quotes on a monthly basis. We will never allow price strangulation to disincentivise our domestic refining capacity optimisation.