The Nigerian government has reached an agreement with international oil companies, paving the way for the sale of crude oil to domestic refiners at market prices.
The agreement, brokered by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), ends a pricing dispute that had strained relations between the government and oil producers.
According to the NUPRC, the resolution ensures that domestic refining capacity is optimized, while preventing “crude supply profiteering” and ensuring oil production remains profitable.
The regulator has mandated monthly cargo price quotes from producers and refiners to ensure transparency.
Earlier this year, the NUPRC directed local and international oil companies to prioritize crude oil supply to local refineries.
The target set was 483,000 barrels daily. Beneficiaries included the Dangote refinery, Warri and Port Harcourt refineries, and smaller refineries like Waltersmith, OPAC, and Niger Delta Petroleum Refinery.
It should be noted that the Petroleum Industry Act (PIA) requires international oil companies to meet local demand by supplying crude oil to domestic refineries before exporting surplus. However, last month, Dangote Industries Limited accused IOCs of inflating prices and obstructing the Dangote Oil Refinery’s efforts to purchase local crude.
