Synergy Between Refineries, Oil Firms To Rise As NUPRC Unveils Domestic Crude Oil Supply Obligation Template

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled the template for Domestic Crude Oil Supply Obligation (DCSO). The move, according to the NUPRC would increase the level of synergy between refineries and oil producing companies in the country.
The NUPRC Chief Executive, Gbemga Komolafe, disclosed these during a media briefing in Abuja, adding that Nigeria’s crude oil reserves had risen to 31.56 billion barrels, while condensate reserves stood 5.94 billion barrels, totaling 37.50 billion barrels.

Komolafe stated that with the new DCSO template, the second half of 2024 is poised to witness increased synergy between local refineries and producing companies, setting the stage for a more robust and self-reliant petroleum landscape in Nigeria.
According to him, the guidelines will address areas such as procedure for implementation of DCSO, procedure for domestic crude oil requirement allocation, payment currency, and payment methods.
It will also cover logistics scheduling, crude oil diversion and sanctions, amongst others.
He said, “The Commission in conjunction with relevant stakeholders from NNPC Upstream Investment Management Services (NUIMS), representatives of Crude Oil/Condensate Producers, Crude Oil Refinery-Owners Association of Nigeria (CORAN) and Dangote Petroleum Refinery came up with the template for the buy-in of all, in a bid to foster a seamless implementation of the DCSO and ensure consistent supply of crude oil to domestic refineries.
“This strategic initiative aligns with the policy of the current administration and the declaration of President Bola Ahmed Tinubu that Nigeria is ready for business. Mr. President as part of his fiscal policy vacated barriers to investment in the oil and gas sector. Furthermore, this aligns with Nigeria’s commitment to bolstering domestic refining capacity and ensuring the sustainability of its oil industry.
“The template provides a transparent framework aimed at fostering collaboration among stakeholders for a thriving energy sector.
“It is therefore my pleasure to unveil the template for Domestic Crude Oil Supply Obligation (DCSO) compliance. With this development, the second half of 2024 is poised to witness increased synergy between local refineries and producing companies, setting the stage for a more robust and self-reliant petroleum landscape in Nigeria.”