Fed Govt Sets Up Committee to Resolve Oil Supply to Refineries

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

This decision was announced after a meeting held in Abuja with key industry stakeholders. The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobri, disclosed that the committee, headed by the Permanent Secretary, Ambassador Nicholas Ela, is expected to submit its findings and recommendations by Tuesday.

The meeting addressed concerns stemming from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) policy on Crude Oil Supply Obligation, which is outlined in section 109(2) of the Petroleum Industry Act (PIA). Senator Lokpobri emphasized the importance of resolving misunderstandings related to this policy, which had caused friction between international oil companies (OPTS) and indigenous oil companies (IPPG).

“The reason why we are gathered here today is that we feel we should discuss a very important issue in the oil industry,” Lokpobri stated. “There seems to be some misunderstanding of the regulation made by NUPRC that has to do with domestic crude oil supply obligation by oil companies. And as part of our policy here in the ministry, whenever there is a seeming misunderstanding, we bring parties together with a view to resolving whatever misunderstanding parties will have.”

The minister reiterated the government’s commitment to supporting domestic refineries and creating a globally competitive environment for the oil and gas sector. He highlighted the government’s policy of fostering sustainable growth in the industry through dialogue and resolution of conflicts.

Despite initial disagreements, Lokpobri assured that most of the issues have been resolved, with only a few grey areas remaining. He stressed that all parties, including the oil firms operating in Nigeria, are committed to the successful implementation of the domestic crude oil obligation policy.

Key attendees at the meeting included Green Energy International Limited CEO Prof. Anthony Adegulugbe, Seplat Energy Plc’s Mr. Roger Brown, AA Holdings & EVC Platform Petroleum Chairman Mr. Austin Avuru, and IPPG Secretariat Executive Coordinator Oyeleke Banmeke.