FG Implements New Guidelines For Oil Producers Regarding Crude Oil Sales In Nigeria

FG Implements New Guidelines For Oil Producers Regarding Crude Oil Sales In Nigeria....KINDLY READ THE FULL STORY HERE▶

The Nigerian federal government has introduced fresh regulations aimed at governing the sale of crude oil to local refineries within the country. Under these directives, articulated by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), oil producers are mandated to prioritize selling crude oil to domestic refineries, thereby diminishing the nation’s reliance on imported refined products.

As per the directive, all oil companies operating in Nigeria are obligated to provide crude oil to local refineries that are unable to secure their own supplies domestically. Following the fulfillment of their domestic supply commitments, producers are then permitted to proceed with exporting crude oil, adhering to the guidelines set forth by the NUPRC.

Furthermore, the directive specifies that payments for crude supplied to domestic refineries can be transacted in either dollars, naira, or a combination of both currencies. In cases where agreements on crude supply between local refiners and producers cannot be finalized, the NUPRC will step in as an intermediary, facilitating the arrangement of a sales purchase agreement based on a willing-buyer, willing-seller framework.

Naija News reports that the NUPRC is planning to roll out the Domestic Crude Oil Supply Obligation initiative in the latter half of the year. However, the specific quantity of crude each refinery is required to procure has yet to be determined.

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