The Federal Government has established a committee to address the ongoing challenges preventing the Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG) from supplying crude oil to domestic refineries, including the Dangote Refinery.
Following a meeting with these groups in Abuja, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobri, announced that the committee, led by Permanent Secretary Ambassador Nicholas Ela, is expected to submit its findings by Tuesday.
Lokpobri noted that the meeting resolved most of the issues arising from misunderstandings related to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)’s Crude Oil Supply Obligation policy, which is outlined in Section 109(2) of the Petroleum Industry Act (PIA).
“The reason for today’s gathering is to address a critical issue in the oil industry—specifically, a misunderstanding regarding the NUPRC’s domestic crude oil supply obligation for oil companies,” Lokpobri explained. “As part of our policy at the ministry, whenever there is a misunderstanding, we bring the parties together to find a resolution.”
He further stated, “At the end of the meeting, we reached agreements on most points, with only one or two minor issues remaining. We have established a small committee, headed by the Permanent Secretary, to review these matters and report back by Tuesday.”
Despite ongoing speculation and confusion surrounding the NUPRC policy, Lokpobri reaffirmed the government’s commitment to supporting domestic refineries by ensuring a steady supply of crude oil. He also emphasized the government’s dedication to creating a globally competitive environment for the oil and gas sector.
“The sustainability of industry growth is a key policy focus for the government, and I have consistently brought parties together to resolve contentious issues,” Lokpobri said. “Matters that were previously thought to be irreconcilable have been successfully addressed.”
The minister also highlighted that all oil companies in Nigeria are committed to the effective implementation of the domestic crude oil obligation policy.
In attendance at the meeting were key industry figures, including Prof. Anthony Adegulugbe, CEO of Green Energy International Limited; Mr. Roger Brown, CEO of Seplat Energy Plc; Mr. Austin Avuru, Chairman of AA Holdings & EVC Platform Petroleum; and Oyeleke Banmeke, Executive Coordinator of the IPPG Secretariat, among others.
