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CORAN lauds NUPRC over decision to enforce domestic crude supply obligations

The Crude Oil Refineries-owners Association of Nigeria (CORAN) has lauded the move by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over what it described as a decision by the NUPRC to enforce domestic crude supply obligations which non-implementation has so far stifled some local refineries from optimizing production and making refined products available in the local market

NUPRC is the government body charged with the statutory responsibility of ensuring compliance with petroleum laws, regulations and guidelines in the Upstream Oil and Gas Sector. The discharge of these responsibilities involves monitoring of operations at drilling sites, producing wells, production platforms and flow stations, crude oil export terminals, and all pipelines carrying crude oil, and natural gas, amongst other statutory functions.

In a statement released by Chairman of CORAN, Momoh Oyarekhua, today, following a meeting with the management of NUPRC held a with producers and members of CORAN in Abuja, and discussions which included the position of fine and withdrawal of export license, Mr. Oyarekhua said that the commission deserved to be lauded for encouraging this kind of discussions and being fair-minded in its conversation with producers.

Recall that last month CORAN held a meeting with the minister of state for petroleum, Heineken Lokpobiri where the association sought the minister’s intervention to boost crude oil supply to members and also help them reduce the fees they pay to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for every litre of product they refine in-country. The CORAN also advocated for the establishment of a Refinery Intervention Fund to assist local refineries in expanding their capacity from the current 27,000 barrels per day to about 400,000 barrels per day. This follows a series of other consultations and meetings by CORAN with government agencies and representatives with a view to fostering the core issues affecting the local refining of crude in Nigeria

Following a meeting with the minister of state last month, Oyarekhua has hinted that “We have met with the NUPRC, on the issue, because the matter is captured under the domestic crude oil supply obligation which is clearly stipulated in the PIA, we have intimated them with the production capacity of local refiners and also sought their commitment on domestic crude obligation to all modular refiners”.

Oyarekhua said that the modular refineries that are currently producing are starved of crude and even when the crude is available, the local producers want them to pay for it in US dollars. This according to the position of CORAN must be addressed to enable Nigerians to enjoy self-sufficiency in crude refinement.

This meeting and the assurance that NUPRC will fulfill the request to enforce domestic crude supply obligations to local refiners brings to a new positive dimension the quest by CORAN for its members to be given an equal playing field and enabling support to deliver on its mandate of providing refined petroleum products to the Nigerian market at very affordable rates to users, Oyarekhua said.

Source- The Guardian Newspaper.

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