Oil producers in Nigeria will be required to supply 483,000 barrels per day (bpd) of crude oil to local refineries in the first half of 2024, according to a new government regulation.
This move aims to guarantee crude supply for refineries expected to become operational in 2024, including the 650,000 bpd Dangote refinery and the Port Harcourt refinery. Government-run Warri refinery is also expected to restart operations next year.
Dangote will receive the most significant allotment at 325,000 bpd.
Despite the 2021 Petroleum Industry law mandating partial domestic crude supply, the requirement was not enforced because the domestic refineries were not operational.
This is the first enforcement of the policy. Gbenga Komolafe, chief executive of NUPRC, told Reuters that the regulator was now enforcing the regulations as Nigeria seeks to start refining its oil.
New refineries expected
A newly published Domestic Crude Supply Obligation guidelines from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), showed that eight refineries were expected to be operational from 2024, with total refining capacity of 864,500 bpd, meaning that oil producers would be required to supply just over half of the crude requirements.
Only three of those, however, have individual capacities above 10,000 bpd.
Refineries will pay global market prices for the crude, and 48 oil producers, including major players like TotalEnergies, Chevron, Shell, and ExxonMobil, will participate.
See the list of refineries and expected fuel requirement for first half of 2024.
| Refinery | Capacity (bpd) | Forecasted required supply |
| Dangote Refinery | 650,000 | 325,000 |
| Port Harcourt Refinery Company (Old) | 60,000 | 54,000 |
| Warri Refinery and Petrochemical
Company |
125,000 | 75,000 |
| Niger Delta Refinery | 11,000 | 11,000 |
| OPAC Refineries | 10,000 | 10,000 |
| Waltersmith Refinery and Petrochemical Company Limited | 5,000 | 5,000 |
| Duport Midstream | 2,500 | 2,000 |
| Edo Refinery and Petrochemical
Company Limited |
1,000 | 1,000 |
| Total | 864,500 | 483,000 |
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