The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that 11 crude oil cargoes offered to local refiners in one month were rejected, despite ongoing complaints about feedstock shortages.
NUPRC Chief Executive, Gbenga Komolafe, represented by Boma Atiyegoba, disclosed this at the Crude Oil Refinery-Owners Association of Nigeria summit in Lagos. He said records showed that crude was being made available under the Domestic Crude Supply Obligation (DCSO), contrary to refiners’ claims.
According to him, in April, 48 cargoes were available for export, with 21 reserved for local refining. However, only 10 were lifted while 11 went unclaimed. Komolafe explained that most rejections were due to pricing and crude grade preferences, not unavailability.
“Eight of the cargoes were rejected over pricing differences and three due to specification issues,” he said, adding that crude trading remained a commercial decision between willing buyers and sellers.
The disclosure comes amid persistent complaints from the 650,000-barrel-per-day Dangote Refinery and modular plant operators, who accuse the government of failing to enforce domestic crude supply provisions in the Petroleum Industry Act.
Meanwhile, Executive Secretary of the African Refiners and Distributors Association, Anibor Kragha, urged Nigerian refiners to expand their processing capabilities to accommodate more crude blends for improved output.