The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has directed oil exploration and production companies to strictly adhere to Crude Oil Supply Obligations for local refineries, warning that failure to comply will result in denial of export permits for crude cargoes meant for domestic refining.

In a circular issued Monday, NUPRC emphasized that any changes to cargoes designated for local refineries require express approval from the Commission’s Chief Executive, Gbenga Komolafe. The move follows complaints from local refiners, including Dangote Refinery, over inadequate crude supplies.

Citing Section 109 of the Petroleum Industry Act (PIA) 2021, Komolafe reaffirmed that diverting crude meant for local refineries is illegal, and violators will face strict enforcement measures. The Domestic Crude Supply Obligation (DCSO) Regulation 2023 was developed to ensure compliance, alongside a structured implementation framework.

A recent stakeholder meeting involving over 50 industry players revealed tensions between refiners and producers, with refiners accusing oil firms of prioritizing exports, while producers blamed refiners for not meeting commercial terms.

The NUPRC reiterated its commitment to enforcing compliance, warning that violations threaten Nigeria’s energy security and urging all parties to adhere to international best practices in procurement and operations.