Friday, 12 July 2024 05:06

FG brokers oil supply deal between crude producers and refineries

Rate this item
(0 votes)

Nigeria's oil regulator has struck a deal with producers to allow sales of crude to domestic refiners at market prices, ending a supply dispute that had strained relations with international oil companies.

Nigeria relies on imports for most of its fuel needs due to inadequate refining capacity, although a 650,000 barrel-a-day refinery built by Africa's richest man Aliko Dangote and operational since February, should make it self-sufficient and able to export.

An agreement on Wednesday follows complaints from the Dangote Refinery that oil majors were hindering local crude purchases by demanding excessive premiums or saying they had no available supplies.

The regulator Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said in a statement it could not allow pricing to impede domestic refining.

"We will never allow price strangulation to disincentivise our domestic refining capacity optimisation," NUPRC's chief Gbenga Komolafe said following talks with oil companies grouped under the Oil Producers Trade Section (OPTS).

He said the regulator would work to ensure there was no "crude supply profiteering," although he also said it did not condone any loss-making in oil production.

To ensure transparency, Komolafe requested monthly cargo price quotes on crude oil supply and delivery from both producers and refiners and said it was up to the regulator to balance upstream development with a sustainable domestic energy supply chain.

In March, the NUPRC chief met with oil producers and refiners to addressrefineries' lack of access to locally produced crude oil.

The OPTS had no immediate comment.

 

Reuters

April 03, 2025

Oil prices sink after Trump announced sweeping new tariffs

Oil prices dropped $2 on Thursday after U.S. President Donald Trump announced reciprocal tariffs on…
April 02, 2025

Natasha outsmarts Kogi govt, Police; ‘drops’ from sky to jubilant crowds

In a spectacular display of defiance, Senator Natasha Akpoti-Uduaghan turned the Kogi State Government and…
March 30, 2025

Does wearing a cap make you go bald? Here’s what dermatologists want you to know about hair loss

Hair loss can be an upsetting and worrisome experience. But with a slew of wellness…
March 30, 2025

Two 'proof of heaven' stories and one 'proof of hell' that had atheist calling out…

Ole Braatelien What happens to our consciousness the moment we die? Christians believe our souls…
April 02, 2025

Ponzi schemes: New law slams 10-year jail term, N40m fine - SEC

Nigeria’s Securities and Exchange Commission (SEC) has finally declared war on Ponzi schemes, with a…
April 03, 2025

What to know after Day 1134 of Russia-Ukraine war

WESTERN PERSPECTIVE Putin conscripts 160K men as Russia eyes Ukraine offensive Russia has initiated its…
March 28, 2025

Bill Gates: Within 10 years, AI will replace many doctors and teachers—humans won’t be needed…

Tom Huddleston Jr. Over the next decade, advances in artificial intelligence will mean that humans…
January 08, 2025

NFF appoints new Super Eagles head coach

The Nigeria Football Federation (NFF) has appointed Éric Sékou Chelle as the new Head Coach…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2025 NewsScroll. All rights reserved.