3 months ago
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Leaders from both international and indigenous oil companies have reached a consensus on key issues regarding domestic crude oil supply obligations.
The agreement was reached during a meeting convened by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, with members of the Oil Producers Trade Section in Abuja on Thursday.
The meeting, which sought to address misunderstandings about the Nigerian Upstream Petroleum Regulatory Commission’s regulation concerning domestic crude oil supply, brought together stakeholders from various arms of the oil industry.
Part of those in attendance include the Chief Executive Officer, Frontier Oil, Dada Thomas; Chairman, AA Holdings & EVC Platform Petroleum, Mr Austin Avuru; CEO Green Energy, Prof Anthony Adegbulugbe; and CEO Aradel, Mr Adegbite Falade.
Other include the CEO of Seplat, Mr Rogers Brown, Chief Operating Officer, Seplat, Mr Samson Ezugworie, CEO of Oriental Energy, Mr Mustafa Indimi; CEO of Newcross, Victor Sodje and Executive Coordinator of IPPG Secretariat, Oyeleke Banmeke.
The leadership of the Independent Petroleum Producers Group, executive commission members, and representatives from international oil companies were also in attendance.
“There has been a misunderstanding regarding the regulation made by NUPRC concerning domestic crude oil supply obligations by oil companies,” Lokpobiri stated at the briefing. “As part of our ministry’s policy, we bring parties together to build consensus and resolve misunderstandings.”
The minister emphasised that the ministry’s approach is rooted in dialogue and collaboration, ensuring that all parties are aligned with the government’s objectives.
He highlighted the progress made during the discussions, noting that most of the contentious issues have been resolved.
“We have made significant progress, with only one or two grey areas remaining,” Lokpobiri announced.
To address these outstanding issues, he revealed that a small committee, headed by the Permanent Secretary, will be formed to review the matter and report back within two days.
Lokpobiri assured the public that the industry is united in its commitment to supporting local refining and creating a conducive environment for business operations.
“Our goal is to inform Nigerians that, despite any misconceptions, the oil industry is united. We are committed to supporting local refining and creating a globally competitive environment for business operations in the oil and gas sector,” he said.
The minister also dispelled any notions of discord within the industry.
“The issues that were thought to be fundamental have been largely agreed upon, and all companies in Nigeria are committed to meeting the domestic crude oil supply obligations outlined in the Petroleum Industry Act.”
On August 20, 2024, The PUNCH reported that oil producers, under the aegis of the Independent Petroleum Producers Group, warned against being forced to sell crude oil to the Dangote Refinery and other local ones in Nigeria.
The IPPG also called on the Nigerian National Petroleum Company Limited to re-direct its allocated crude oil volumes to Dangote Refinery and other local refineries to mitigate the current crude supply shortage being experienced by the local refiners that is impacting local product availability in many parts of Nigeria.
The Chairman of IPPG, Abdulrazak Isa, in a letter dated August 16, 2024, and addressed to the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, said the NNPC should utilise its allocated 445,000 barrels per day intervention crude oil volume to salvage the current situation as it did in many instances in the past.
