PETROAN Hails NUPRC’s Ban On Crude Oil Export, Demands Strict Enforcement

The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) Billy Gillis-Harry on Wednesday urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to crack down on refineries, cargo vessels, and companies that violate the policy.

In a statement signed by the Public Relations Officer, PETROAN, Joseph Obele, the association applauded the federal government for banning the export of crude oil allocated to local refineries.

Harry said about 500,000 barrels per day (bpd) meant for domestic refining are being diverted to the international market.

He stressed that the ban will strengthen local refining capacity, cut refined petroleum imports, and reduce pressure on foreign exchange reserves.

“The exportation of crude oil meant for domestic refining has led to the abandonment of local refineries and has been a major racketeering scheme, with producers and traders prioritizing quick foreign exchange proceeds over local refining.

“Approximately 500,000 barrels of crude oil per day are allocated for domestic refining, but these volumes often find their way to the international market.

“The ban is expected to have a positive impact on the economy, as refining crude oil locally will enrich the petrochemical industries and agricultural sector, reduce inequalities in income, and enable Nigeria to transition from a raw material supplier to a value-added product supplier,” he noted

Harry further assured that the ban will secure an adequate supply of refined petroleum products, lower prices, and improve conditions for consumers.

The NUPRC had ordered exploration and production companies to strictly implement the Crude Oil Supply Obligations (DICsO)to local refineries.

The regulator plans a heavy sanction on companies defaulting in their obligations as well as diverting crude oil meant for local refineries, according to the directive issued by the Commission Chief Executive, Engr. Gbenga Komolafe.

The directive on Sunday was issued in a circular with reference: NUPRC/OOECDP/GEN.CORR./Vol.5, titled, ‘Strict Compliance to Domestic Crude Supply Obligation,’ obtained by THE WHISTLER.

It said, “You are hereby invited to refer to Section 109 of the Petroleum Industry Act (PIA) 2021 which introduces the DCSO in the bid to ensure adequate crude oil supply to local refineries to guarantee national energy security.

“Pursuant to Section 109(2) of the PIA 2021, the Commission has taken the following critical regulatory actions to ensure the implementation and compliance with the DCSO:

“The Commission developed and signed the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023 pursuant to provisions Section 109(2) of the PIA 2021.

“The development of DCSO framework and procedure guide to guide its implementation.

“In the monthly curtailment meetings with the Upstream operators, the Commission ensures compliance with the developed production metrics templates which entrench visibility on available volumes usually two months ahead of the current month (M+2) for refiners to progress discussions on delivery of such volumes to the refineries.”

The NUPRC further warned against the diversion of crude cargo designated for local refineries.

ENDS

PETROAN Hails NUPRC’s Ban On Crude Oil Export, Demands Strict Enforcement is first published on The Whistler Newspaper