Dangote, Other Refineries to Benefit as FG Gives Strict Orders to Oil Firms on Crude Oil Export

The Nigerian government has ordered crude oil producers in the country to prioritise local refineries in crude supply before export The Nigerian Upstream Regulatory Commission (NUPRC) said the new order is to boost locally refined petroleum products in the country The NUPRC also announced the addition of over one billion barrels of crude oil and more than two trillion cubic feet of gas to Nigeria’s reserves.

The Nigerian government has released new rules to force oil producers to sell crude oil to local refineries, aiming to reverse the country’s reliance on imported refined petroleum products. The directive is a significant highlight of a comprehensive template guiding the implementation of Domestic Crude Oil Supply Obligation (DCSO) that aligns with the Petroleum Industry Act (PIA) of 2021.The Nigerian Upstream Regulatory Commission (NUPRC) unveiled the new rule at a recent Abuja event on Monday, April 15, 2024. 

According to NUPRC Chief Executive Officer Gbenga Komolafe, the new directive was a partnership effort involving critical stakeholders from NNPC Upstream Investment Management Services, Crude Oil/Condensate Producers, Crude Oil Refinery Owners Association of Nigeria (CORAN), and Dangote Petroleum Refinery. Nigeria’s oil gas reserves rise The NUPRC boss also announced that Nigeria’s hydrocarbon reserves have jumped by 1.087 billion barrels, with about 2.57 trillion cubic feet of gas reserve. Nigeria now boasts about 37.5 billion crude oil reserves, with a total gas resource of 209.26 trillion cubic feet, The Chief Executive of NUPRC, Gbenga Komolafe, announced this during an event and explained that the reserves’ lives also stand at 68.01 years and 97.99 years for oil and gas, respectively. An analysis shows that crude oil and condensate reserves currently stand at 31.56 billion barrels and 5.94 barrels, respectively, and are expected to reach about 37.50 billion barrels. Also, gas and non-associated gas reserves stand at 102.59 trillion cubic feet and 106.67 trillion cubic feet, for 209.26 trillion cubic feet. 

Libya beats Nigeria as the largest oil producer According to ThisDay, only Libya, with its over 48 billion oil reserves, tops Nigeria in Africa. At the same time, Nigeria leads in gas reserves on the continent, with over 33% of the entire continent’s reserves. Komolafe stated that NUPRC has been working towards President Bola Tinubu’s policies to improve the performance of Nigeria’s oil and gas sector and boost the growth of the country’s oil and gas reserves to ensure stable production.He said the event’s significance was to reveal Nigeria’s capacity regarding the proven abundance of hydrocarbons. The NUPRC boss said that most of the new additions to the reserves were from brownfields, especially recent productions from fields owned by the last marginal oil field awardees. FG gives new instruction on crude oil sale Another report by Legit.ng says that the federal government has announced that indigenous refineries can now buy crude oil in naira or dollars. The government disclosed this through the Nigerian Upstream Petroleum Regulatory Commission(NUPRC) at a briefing in Abuja on Monday, April 16, 2024. According to NUPRC, entities like Dangote and other modular refineries nationwide must now decide which currencies to pay for crude oil. 

Source: legit.ng