Nigerian oil producers will probably be required to produce 483,000 barrels per day (bpd) to native refineries within the first six months of 2024, new rules confirmed on Friday, as Africa’s largest oil exporter seeks to ensure provides for native refining.
In response to Reuters, Dangote oil refinery and a minimum of three government-run refineries are amongst native refineries which are anticipated to start operations in 2024.
The 650,000-barrel-per-day Dangote refinery will obtain the most important quantity of 325,000 bpd, in accordance with newly printed Home Crude Provide Obligation pointers from the Nigerian Upstream Petroleum Regulatory Fee (NUPRC).
NUPRC information confirmed that six refineries had been anticipated to be operational from 2024, with complete refining capability of 864,500 bpd, which means that oil producers could be required to produce simply over half of the crude necessities.
A Petroleum Business Act handed in 2021 launched a requirement for oil producers in Nigeria to produce a part of their crude to home refineries so they aren’t starved of crude provides, however this has but to be enforced.
NUPRC stated the refineries would pay world market costs for the crude.
A complete of 48 oil producers, together with majors TotalEnergies (TTEF.PA), Chevron (CVX.N), Shell and ExxonMobil (XOM.N) will take part within the programme, and manufacturing is to come back principally from their three way partnership operations with Nigerian state oil agency, the NNPCL participates.
Gbenga Komolafe, chief govt of NUPRC, instructed Reuters that the regulator was now imposing the rules as Nigeria seeks to start out refining its oil.
Nigeria has stated it plans to supply 1.8 million bpd of oil subsequent yr, above its OPEC quota of 1.5 million bpd.
