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The federal government of Nigeria has outlined new regulations that will guide the sale of crude oil to refineries in Nigeria.
The government, through the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) said oil producers are to sell crude oil to local refineries in a move to reduce the country’s dependence on imported refined products.
According to the directive, all oil companies operating in Nigeria are required to supply crude oil to domestic refiners who are unable to procure their own supplies within the country.
After fulfilling their domestic supply commitments, producers can then go ahead to export crude oil, as outlined by the measures implemented by the NUPRC.
It added that payments for crude to domestic refiners can be made in dollars, naira, or a combination of both.
The NUPRC will serve as a middleman between local refiners and producers when agreements on crude supply cannot be finalized, helping to arrange a sales purchase agreement based on a willing-buyer, willing-seller model.
Naija News reports the NUPRC plans to implement the Domestic Crude Oil Supply Obligation initiative in the second half of the year and the specific quantity of crude each refinery is required to procure has not yet been determined.
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