The Federal Government through the Nigeria Upstream Petroleum Regulatory Council (NUPRC) has directed oil producers to supply around 483,000 barrels per day (bpd) of crude oil to indigenous refineries for the first six months of 2024.
This initiative is part of Nigeria’s efforts to ensure a stable supply for domestic refining. The Petroleum Industry Act (PIA) enacted in 2021 introduced a provision mandating oil producers in Nigeria to allocate a portion of their crude to domestic refineries to prevent them from facing shortages.
According to NUPRC’s new regulations, the local refineries expected to commence operations in 2024 are the Dangote oil refinery and at least three government-run refineries.
The recently published Domestic Crude Supply Obligation guidelines by NUPRC clarified that the 650,000-barrelper-day Dangote refinery was set to receive the largest share, with a volume of 325,000 bpd.
Data from NUPRC revealed that six refineries, collectively boasting a refining capacity of 864,500 barrels per day (bpd), were expected to become operational in 2024.
As a result oil producers should provide slightly more than half of the crude requirements to meet these refining capacities.
According to the report, other refineries expected to benefit from the crude oil supply include the Warri and Port-Harcourt refineries, which could receive 75,000 and 54,000 barrels of crude oil daily, respectively; whole, refineries such as Waltersmith, OPAC, and Niger Delta Petroleum Refinery among others, could receive 10,000 bpd and below.
SOURCE: newtelegraphng.com