The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has cautioned that it will deny export permits for crude oil cargoes meant for domestic refining if oil firms do not fulfil their domestic crude obligations.

The commission’s chief executive, Gbenga Komolafe, stated this in a statement on Monday, February 3, 2025, saying that any changes to cargoes meant for local refining must receive immediate approval from the NUPRC.

President Bola Tinubu's government threatens license revocation for oil firms diverting crude oil.

According to the letter dated February 2, 2025, to oil exploration and production companies and their equity partners, the NUPRC’s boss said that diverting crude meant for local refineries negates the law.

The upstream regulator said the refiners and producers blame each other for inconsistencies in implementing the Domestic Crude Obligation (DCSO) policy.

The commission said that the situation has led to refiners claiming not to meet supply terms and resorting to selling their crude outside, leading to them sourcing for feedstock elsewhere.

Refineries and oil firms trade blames However, the NUPRC said that the producers countered the refiners’ claims, saying they hardly meet commercial and operational obligations, forcing them to explore markets elsewhere to avoid operational bottlenecks.

NUPRC warned against further breaches from the parties, stressing the need for refiners to abide by international best practices and operational guidelines.

The upstream regulator said producers must vary the conditions contained in the policy without getting expression permission before selling crude outside the agreed guideline.