A report by Reuters revealed that oil regulators in Nigeria have reached a compromise with producers to enable crude sales to domestic refiners at market pricing, resolving a supply conflict that had strained relations with multinational oil corporations.
However, following the complaints, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) stated that the price could not be used to hamper domestic refining.
“We will never allow price strangulation to disincentivize our domestic refining capacity optimization,” Gbenga Komolafe the NUPRC’s chief said.
The NUPRC’s chief also asserted the regulator would prevent “crude supply profiteering,” while not tolerating any loss-making in oil production.
To allow for complete transparency, Komolafe requested that producers and refiners issue monthly cargo price quotes on the supply and delivery of crude oil. The regulator was assigned to strike a balance between upstream development and a sustainable domestic energy supply chain.
