The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned companies charged with the responsibility of supplying crude oil to private refineries to stick to the rules of engagement or face severe sanctions for sabotaging the economy.
The warning comes as more private refineries warm up to commence operation in Nigeria. The Commission in a statement vowed to take all necessary steps within the prescriptions of the Petroleum Industry Act (2021) to ensure adequate and consistent supply of feedstock to operators.
“The pre-emptive steps are being taken because it would send wrong and unbecoming signals to the international business community if operators of domestic refineries in one of the world’s largest crude oil-producing countries start importing feedstock for their production”, the statement noted.
NUPRC said it was in contemplation of the possibility of sabotage that Section 109 of the PIA 2021 introduced the Domestic Crude Supply Obligation (DCSO) to Nigeria’s oil industry to ensure that domestic refineries are not starved of crude oil supply for their operation.
“The Commission has already taken some steps in furtherance of this goal by developing and signing the Production Curtailment and Domestic Crude Oil Supply Obligation (PC&DCSO) Regulation 2023, in line with the provisions of Section 109(2) of the PIA 2021.”
