In the first half of 2024, local refineries mandate Nigerian oil producers to supply 483,000 barrels per day (bpd).
The development is to ensure a steady supply for local refining as Nigeria, the largest oil exporter in Africa, takes steps to secure its domestic energy needs.
The Dangote oil refinery and at least three government-run refineries are among the local refineries that are expected to begin operations in 2024.
The 650,000-barrel-per-day Dangote refinery will receive the biggest volume of 325,000 bpd, according to newly published Domestic Crude Supply Obligation guidelines from the
Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
According to NUPRC data, six refineries, with a total refining capacity of 864,500 barrels per day (bpd), are projected to be operational from 2024 onwards, which means that producers will need to provide just over half of the crude requirements for these refineries.
This month, the Dangote refinery received three shipments of crude after years of delay. NNPC has chartered some other tankers to transport further crude shipments from Nigerian offshore fields to the refinery.
Although the Petroleum Industry Act, passed in 2021, mandates Nigerian oil producers to supply a portion of their crude to domestic refineries to ensure a stable crude supply, this requirement has not been enforced yet.
NUPRC has specified that the refineries will be required to pay global market prices for the supplied crude. The programme will involve the participation of 48 oil producers, including major companies like TotalEnergies, Chevron, Shell, and ExxonMobil. Production will primarily come from joint venture operations with the Nigerian state oil firm, NNPC.
Gbenga Komolafe, chief executive of NUPRC, told Reuters that the regulator is now enforcing the regulations as Nigeria seeks to start refining its oil.
In the coming year, Nigeria plans to produce 1.8 million barrels per day (bpd) of oil, surpassing its OPEC quota of 1.5 million bpd.
