In an attempt to allay worries over the scarcity of crude oil for local refiners, the Federal Government met with operators of refineries on Wednesday.
The statement made clear that failing to satisfy the domestic crude requirements would result in a national humiliation and emphasized the need of providing oil to the Dangote refinery, which has a daily capacity of 650,000 barrels.
During a meeting with operators of domestic refineries in Abuja, Gbenga Komolafe, the Chief Executive of the Federal Government agency, Nigerian Upstream Petroleum Regulatory Commission, revealed this information.
He said, “Good enough we have the largest refinery in Africa, that is the Dangote refinery. It is ready to commence operations. We’ve received a request from the refinery to guarantee feedstock to the 650,000 barrels refinery and we believe that as a nation it will be a shame if we cannot meet the feedstock of the refinery.
“So this meeting was convened for us to collectively put heads together to address the feedstock of our domestic refineries. The objective is for us all to take the nation to a level where it becomes a net exporter of refined product, as against being a net exporter of crude without value addition.”
Komolafe also disclosed that the NUPRC had written to crude oil producers requesting the firms to provide details on the volumes of committed and uncommitted crude oil in their domains.
“Some producers are yet to comply with that letter. We need responses to that letter so that our development and production department will be able to analyse and advise the commission appropriately as to the available and non-committed barrels that we have.
“For us to now be able to compare that with the total domestic requirements for feedstock. So it is when we get that that we will be able to draw a conclusion whether the non-committed volumes will be able to meet our current domestic feedstock as a nation. So that is where we are.”
The NUPRC boss stressed that the domestic refining of crude would impact positively on the pump prices of refined petroleum products.
“We are a nation with huge crude oil reserves, which is about 38 billion barrels. So we are blessed as a nation, but in spite of the crude oil reserves that I mentioned, we are a net exporter of crude oil and net importer of refined products.
“And from the data we are all aware of, our inability to meet our domestic refining obligation has impacted negatively on the state of our economy, given the number that we roll out in terms of under-recovery that we incurred during the fuel subsidy regime.
“We all understand that if we are able to meet our domestic refining obligations, we will be able to impact largely on some of the attendant costs in pricing the refined products.
“So it behoves on us all as an industry to find a way to make Nigeria a net exporter of refined products, and that is the issue that we gather here to address,” the NUPRC boss stated.
