NUPRC reveals unclaimed crude cargoes despite refiners’ complaints of shortages, citing pricing and specification conflicts in April allocation
NUPRC reveals unclaimed crude cargoes offered to local refiners in April, contradicting repeated industry claims of severe feedstock shortages.
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During a panel at the Crude Oil Refinery‑Owners Association of Nigeria summit in Lagos, Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), via representative Boma Atiyegoba, stated that 11 of the 21 cargoes allocated under the Domestic Crude Supply Obligation (DCSO) went unclaimed.
The commission insists crude was made available, even though refiners argue otherwise.
Komolafe noted that the shortfall was not due to lack of supply but stemmed from commercial disagreements and technical preferences.
Of the 11 cargoes unlifted, eight were rejected over pricing disputes, while three failed due to grade or specification mismatches.
He emphasised that the commission does not intervene in the commercial pricing between buyers and sellers.
He said:
“Crude oil is an international commodity, so there are a lot of factors and indices that go into the pricing… the commission has decided not to interfere in the commercial pricing of your business with the operators … the willing buyer, willing seller clause comes in.”
Komolafe used April’s figures as illustration: out of 48 export‑eligible cargoes, 21 were reserved for local refining, but only 10 were taken up by refiners.
The remainder, he maintained, did not reflect a failure of supply, but of negotiation or fit.
At the same panel, Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association, urged Nigeria’s refineries to widen the range of crude blends they can process.
He argued that greater flexibility would reduce rejection rates and improve utilisation.
In contrast, Mrs Dolapo Okulaja, Vice‑Chair of the Crude Oil Refinery‑Owners Association of Nigeria, lambasted the commission’s position.
She insisted many refiners still operate under crippling supply shortfalls, despite legal provisions in the Petroleum Industry Act (PIA).
She warned that under‑allocation threatens investment viability.
“We know we have the laws in the PIA, but the reality is that most refiners are not getting the quantity of crude they need to operate efficiently,” Okulaja said.
She also highlighted infrastructure deficits—such as pipelines and delivery systems—as additional barriers.
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Meanwhile, Momoh Oyarekhua, President of CORAN, asserted that certain clauses in the PIA, notably the “willing buyer, willing seller” clause, may undermine the intended guarantees of the DCSO by leaving critical decisions to market negotiations rather than regulatory compulsion.
David Okere is a journalist and contributor to Freelanews.com, covering business, governance, public affairs, and human-interest stories with a commitment to accuracy, balance, and public interest reporting.
