Breaking: Nigerian Regulatory Commission-Mandate Oil Companies To Supply Crude To Dangote-Refinery

Breaking: Nigerian Regulatory Commission-Mandate Oil Companies To Supply Crude To Dangote-Refinery

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced its intention to compel international oil companies (IOCs) to provide crude oil to the Dangote oil refinery. This decision comes in response to claims made by the Chairman of the Dangote Group regarding the reluctance of IOCs to sell crude to the refinery.

Olaide Shonola, the spokesperson for the NUPRC, emphasized the commission’s commitment to ensuring the local sale of crude to Dangote and other refineries in the country. Shonola stated that the NUPRC would intervene and engage with the IOCs, mandating them to sell to the Dangote refinery through clear directives.

While speaking with The Ireporteronline, Shonola highlighted the regulatory authority of the NUPRC, stating that while they cannot force the IOCs, they can mandate them through regulatory functions. She emphasized that the commission would continue engaging with the IOCs to ensure compliance with the directives.

When asked about potential sanctions, Shonola refrained from commenting but reiterated the commission’s commitment to issuing clear directives based on regulatory functions.

In an interview with CNN, Aliko Dangote expressed concerns about the reluctance of IOCs to sell crude to the 650,000 barrels capacity oil refinery. He noted that while the Nigerian National Petroleum Company Ltd (NNPC) was making efforts to supply feedstock to the refinery, some IOCs preferred exporting crude for foreign exchange rather than supplying domestically.

Dangote emphasized the significance of the refinery in reducing CO2 emissions and transforming Africa’s oil industry by refining crude domestically. He expressed pride in the project’s potential to eliminate the need for numerous oil shipments into and out of Africa.

Despite the NUPRC’s issuance of a new rule in April mandating oil producers to prioritize domestic refineries, it appears that some IOCs are not complying with this directive.