Local refineries, including modular refineries, have decried zero allocation of crude oil by producers, which they say may impact pump prices......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
Access to feedstock by local refineries has been at zero level despite Nigeia’s increasing crude oil output.
Local refineries resort to crude oil imports
Owners of local refineries have asked the Nigerian government to ensure that oil-producing companies prioritise domestic refineries before exporting.
The development has led to a significant challenge for refineries in Nigeria, which cannot operate at full capacity due to a lack of adequate feedstock.
It has also made refiners resort to imports to survive and increase their capacity.
Legit.ng reported that the mega Dangote Refinery imported 12 million barrels of crude oil from the US in February as it plans to ramp up production.
The refinery, which currently produces 550,000bdp, hopes to reach a full refining capacity of 650,000bpd by June this year.
The Lekki-based refinery hit a major milestone recently when it announced that it now produces about 33 million litres of PMS daily, the equivalent of local consumption.
Domestic refineries asked FG to implement DSCO
The publicity secretary of the Crude Oil Refinery Owners Association of Nigeria (CORAN), Eche Idoko said domestic producers have been marginalised.
Idoko said that no allocation has been received by domestic refiners under the Domestic Crude Oil Supply Obligation (DCSO) guidelines or via any other arrangements.
He stated that modular refineries are the worst hit as they have not received crude under the DCSO arrangements.
He said several group members have embarked on private arrangements, including imports to meet up with the shortfall.
He asked that crude oil producers abide by the regulatory guidelines for feedstock supply to domestic refineries.
According to him, only the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have attempted to reduce licencing costs for the refiners.
Punch reports that despite improved oil output by the Nigerian government, the refineries remain marginalised in the value chain.
Idoko asked the Nigerian government and the economic team to focus on helping domestic refineries, especially modular refineries.
The list of local refineries needing crude oil
A recent report by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said that the Dangote and seven other domestic refineries would need about 770,500 barrels of crude oil daily in the first half of 2025.
Others are Aradel Refinery, Port Harcourt Refinery, Warri Refinery, and Kaduna Refinery.
NUPRC said the allocation makes up about 37% of the predicted first-half 2025 average production of 2,066,94 million barrels daily.
The commission said the target will be met as its Project One million barrels has raised the country’s capacity to produce crude for domestic use and export.
Marketers explain lack of fuel lifting from Warri Refinery
Legit.ng earlier reported that the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has stated that it is awaiting the opening of the portal operated by the Nigerian National Petroleum Company Limited (NNPC) so its members can purchase products from the Warri refinery.
The Warri refinery began operations and petroleum products loading about one month ago.
NNPC announced last week that it had shut down the facility for routine maintenance.