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Nigeria to block oil export permits for producers who do not fill refinery quotas - REUTERS
ABUJA, Feb 3 (Reuters) - Nigeria's upstream oil regulator said on Monday it would deny export permits for oil cargoes from producers who fail to meet their stipulated supply quota to local refineries, including the Dangote Refinery, Africa's largest.
Nigeria's oil industry law, the Petroleum Industry Act, mandates oil producers, including international oil companies, to dedicate specific volumes of crude for domestic refineries before exporting, a requirement called the domestic crude supply obligation.
However, oil producers say they have not complied with this stipulation because refiners are not offering competitive prices. This has prompted the Dangote Refinery to call on the regulator to enforce the law.
A statement on Monday from the Nigerian Upstream Petroleum Regulatory Commission said Gbenga Komolafe, its head, wrote to oil exploration and production companies to remind them of their obligations and penalties for default.
