Dangote Refinery, others increase native crude necessities to 597,700 barrels per day amid tight provide
Dangote refinery and different native refineries have raised their crude oil necessities from Nigeria’s oil producing corporations to 597,000 for the subsequent 5 months.
That is in accordance with a press release from the Nigerian Upstream Petroleum Regulatory Fee (NUPRC), and reported by Reuters on Monday.
Based on the report, Nigeria’s refineries have elevated their home crude necessities for the second half of 2024 to 597,700 barrels per day, up from 483,000 barrels per day within the first half.
NUPRC additionally confirmed that the oil corporations had been solely capable of present 177,777 bpd to the refineries within the first six months of the 12 months, method under the necessities of the refineries.
The growing crude necessities of native refineries, coupled with the challenges oil producers face in assembly demand, have created tensions between the 650,000-bpd Dangote Refinery and the regulator.
NURPC’s failure to implement PIA
Nairametrics earlier reported that the Dangote Refinery accused the NUPRC of failing to implement the Petroleum Trade Act (PIA) in relation to the home provide of crude oil to native refineries.
In a press release launched on Friday, the refinery’s spokesperson, Anthony Chiejina, acknowledged that NUPRC has solely facilitated the sale of a single cargo between the refinery and crude oil producers.
Chiejina additional famous that the regulatory physique cited the “sanctity of a contract” as the explanation for its incapacity to implement its personal Act.
“Other than the time period provide we bilaterally negotiated with NNPCL, to this point NUPRC has solely facilitated the acquisition of 1 crude cargo from a home producer. The remainder of the cargoes we’ve processed had been bought from worldwide merchants.
“All we’re asking for is for refineries in Nigeria to purchase crude immediately from the businesses that produce it in Nigeria reasonably than from worldwide middlemen.
“Sadly, the NUPRC has successfully admitted of their assertion, that they are going to be unable to implement the home crude provide obligation as specified within the PIA citing “sanctity of contracts” as an excuse,” the assertion learn.
What it’s best to know
- As Nigerians and entrepreneurs anticipate the rollout of Premium Motor Spirit (PMS) from the Dangote refinery and different refineries throughout the nation, questions on assembly native crude oil demand persist.
- Based on the Nigerian Upstream Petroleum Regulatory Fee (NURPC), eight refineries are anticipated to start operations in August, with a mixed refining capability of 864,500 barrels per day (bpd).
- This might require oil producers to provide greater than half of that quantity.
- A complete of 52 oil producers, together with main gamers corresponding to TotalEnergies, Chevron, Shell, and ExxonMobil, are anticipated to provide the mandatory crude, primarily by means of their three way partnership operations with the Nigerian Nationwide Petroleum Company (NNPC) Restricted.
