Nigeria’s Oil Regulator Says Dangote Refinery Should Get Supply Before Exports

Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said it is a "national shame" if it continues to export crude oil to other nations when it is unavailable for local refiners.

"It is going to be a matter of national shame if we cannot meet our domestic crude obligations to step up our refining capacity," the oil regulator said, adding that the Dangote refinery should be supplied with crude oil as it is ready to process 650,000 barrels per day, Punch reported.

NUPRC Chief Executive Gbenga Komolafe, at a meeting with operators of domestic refineries in Abuja on Wednesday, pointed out that the Dangote refinery, which is the largest refinery in Africa, is ready to commence operations.

"We've received a request from the refinery to guarantee feedstock to the 650,000 barrels refinery and we believe that as a nation it will be a shame if we cannot meet the feedstock of the refinery," he added.

Komolafe noted that the meeting was held to address the problems faced by domestic refineries and to ensure they receive feedstock before exports happen.

"The objective is for us all to take the nation to a level where it becomes a net exporter of refined product, as against being a net exporter of crude without value addition," he said.

The NUPRC has requested all crude oil producers to provide details of the quantity they have committed to local refineries. Some have already responded, while others are yet to share the information, the executive shared.

He explained that the responses from crude oil producers will help the development and production department to analyze and advise the "commission appropriately as to the available and non-committed barrels that we have."

Komolafe said it is important to learn about the total domestic requirements for feedstock to draw a "conclusion whether the non-committed volumes will be able to meet our current domestic feedstock as a nation."

He stressed that Nigeria is a nation that has huge oil reserves, summing up to 38 billion barrels. While being so blessed as a country, crude oil producers' inability to meet domestic refining obligations will eventually negatively impact Nigeria's economic condition.

Nigerian National Petroleum Corporation Limited (NNPCL) announced in May that the state oil firm will provide 300,000 barrels per day (bpd) of crude oil to the Dangote refinery.