The Federal Government has complied with the demands of domestic crude oil refiners and other operators in the sector after it declared on Monday that indigenous refineries can now buy crude oil in naira or dollars.
It also declared that the total crude oil and condensate reserves in Nigeria increased to 37.5 billion barrels as of January 1, 2024, with a life index of 68.01 years.
The chief executive of the Nigerian Upstream Petroleum Regulatory Commission,Gbenga Komolafe made these known at a briefing in Abuja, where he unveiled the new guide for domestic crude oil supply obligation.
In compliance with the provisions of Section 109(2) of the Petroleum Industry Act 2021, the commission in a landmark move had developed a template guiding the activities for Domestic Crude Oil Supply Obligation.
“This is in a bid to foster a seamless implementation of the DCSO and ensure consistent supply of crude oil to domestic refineries,” the Chief Executive, NUPRC, Gbenga Komolafe, briefed journalists in Abuja.
Modular refineries in Nigeria had been facing the threat of shutting down operations following their inability to access foreign exchange for the purchase of crude oil, a commodity priced in United States dollars.
Operators of the plants explained that the scarcity of dollars had made it almost impossible for dealers to purchase crude oil, as the modular refinery players and oil marketers demanded the sale of crude oil in Naira from the Federal Government.
Nigeria has so far licenced 25 modular refineries with a combined capacity of producing 200,000 barrels of crude oil daily.
Post comments (0)