3 months ago
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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled crude oil producers’ production forecast for the second half (H2) of 2024.
In a report yesterday, Gbenga Komolafe, group chief executive officer (GCEO) of NUPRC, also announced the refining requirement of functional refineries in Nigeria.
Domestic refineries, majorly the Dangote Refinery-650,000 barrels per day (bpd) capacity, have raised their crude oil requirements from Nigeria’s oil producing companies to 597,000 for the second half of 2024, up from 483,000 barrels per day in the first half. This has raised the domestic crude requirements for H2 to 107.22 million barrels.
NUPRC also confirmed that the oil companies were only able to provide 177,777 bpd to the refineries in the first six months of the year, way below the requirements of the refineries.
The increasing crude requirements of local refineries, coupled with the challenges oil producers face in meeting demand, have created tensions between Dangote Refinery and the regulator.
According to NURPC, eight refineries are expected to commence operations in August, with a combined refining capacity of 864,500 bpd. This would require oil producers to supply more than half of that amount.
A total of 52 oil producers, including major players such as TotalEnergies, Chevron, Shell, and ExxonMobil, are expected to supply the necessary crude, primarily through their joint venture operations with the Nigerian National Petroleum Corporation (NNPC) Limited.
Recall that Dangote Refinery has earlier accused NUPRC of failing to enforce the Petroleum Industry Act (PIA) in relation to the domestic crude supply obligations of oil-producing companies to local refineries.
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