At the backdrop of complaints by Dangote Refinery the Federal Government and crude oil producing companies have agreed to an inclusive supply of crude oil to carter for local refining and exports.
The management of the Refinery had severally complained about inadequate supply of crude oil to the 650,000 barrels per day, bpd, plant, based in Lagos.
However, 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 Nigerian Upstream Petroleum Regulatory Commission (NUPRC) agreed to concede to a framework that would be mutually beneficial with a focus on ensuring that the local refineries are not strangulated with off-the-curve prices.
The parties made the commitment at a virtual meeting convened by the Commission Chief Executive, Engr. Gbenga Komolafe, with the OPTS on status review of the Framework for Seamless Operationalisation of Domestic Crude Oil Supply Obligation Template on Monday.
The meeting was part of efforts to effectively implement key sections of the Petroleum Industry Act, especially the aspect of pricing and crude supply to the domestic refineries.
Komolafe said there is a need to have a rule of engagement to ensure that the pricing model from the oil producers is not seen to be strangulating the domestic refineries.
He directed producers and refiners to henceforth provide the regulator with cargo price quotes on crude supply and delivery to effectively monitor and regulate transactions among parties, stressing, “We need to have the price quotes every month.”
The Domestic Crude Oil Supply Obligation (DCOSO) has a convergence with the nation’s energy security. The NURPC boss said his administration is re-engineering its regulatory processes.
He stated further: “We allow all our processes to be transparent.