FG Inaugurate Committee for Crude Oil Supply to Refineries

The Federal Government has established a committee to tackle issues preventing the Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG) from supplying crude oil to local refineries, including Dangote’s.

Following a recent meeting in Abuja, Senator Heineken Lokpobri, Minister of State for Petroleum Resources, announced that the committee, led by Permanent Secretary Ambassador Nicholas Ela, is tasked with resolving these issues and will present its findings on Tuesday.

Senator Lokpobri explained that the meeting aimed to address misunderstandings regarding the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) policy on Crude Oil Supply Obligation, outlined in Section 109(2) of the Petroleum Industry Act (PIA).

“The purpose of today’s meeting was to address important concerns within the oil industry,” Lokpobri said.

“We identified some misunderstandings related to NUPRC regulations on domestic crude oil supply obligations.

To resolve these, we’ve established a committee led by the Permanent Secretary to review the issues by Tuesday.”

The Minister emphasized the government’s commitment to supporting domestic refineries despite the misunderstandings surrounding NUPRC policy.

He stressed the administration’s goal to foster a globally competitive environment for the oil sector.

“Our policy focus is on sustaining industry growth, and we have consistently worked to resolve disputes,” Lokpobri stated.

“We want to assure Nigerians that we are dedicated to local refining and creating a competitive environment for the sector.”

The meeting included key figures such as Prof. Anthony Adegulugbe from Green Energy International Limited, Roger Brown from Seplat Energy Plc, Mr. Austin Avuru of AA Holdings & EVC Platform Petroleum, and Oyeleke Banmeke from the IPPG Secretariat.

Lokpobri concluded, “I want to make it clear that there is no significant disagreement.

All parties are committed to meeting the domestic crude oil supply obligations as set out in the PIA.”