LAGOS, Aug 12 (Reuters) - Nigerian refineries including
the Dangote Refinery have raised their domestic crude
requirements for the second half of 2024 to 597,700 barrels per
day from 483,000 bpd in the first half, the national oil
regulator said, despite tight domestic supply.
The Nigerian Upstream Petroleum Regulatory Commission
(NUPRC) was only able to help secure 177,777 bpd from oil
producers in the first six months of the year, way below what
the refiners had asked for, it said in a statement released on
Friday.
The refineries' rising crude requirements and oil producers'
struggle to meet demand has put the 650,000-bpd Dangote Refinery
in particular at odds with the regulator.
Dangote Refinery has accused the Nigerian Upstream Petroleum
Regulatory Commission (NUPRC) of failing to enforce a law that
requires oil producers to supply domestic refiners, saying in a
statement on Friday that lax enforcement was raising its
operational costs.
The refinery, which is the largest in Africa, says it is
having to increase crude imports due to the insufficient
domestic supplies and this could impact its ambitions this year
and its long-term prospects.
The NUPRC said oil producers could not satisfy the demands
because some had operational challenges while others pledged
most of their output to traders who financed drilling. It also
said forcing them to raise their supply would violate their
contracts.
In its statement on Friday, the regulator also projected
national average crude oil production of 1.7 million bpd by
December 2024, higher than the 1.57 million bpd it projected for
January through July, which producers did not meet.
"This comprehensive data provides insight into the projected
crude oil needs for the refineries, crucial for understanding
the energy landscape in Nigeria for the second half of 2024,"
Gbenga Komolafe, head of the NUPRC said in the statement.
NUPRC data showed that eight refineries are expected to be
operational from August, with a total refining capacity of
864,500 bpd, meaning that oil producers would be required to
supply over half that.
A total of 52 oil producers, including majors TotalEnergies
, Chevron ( CVX ), Shell and ExxonMobil ( XOM )
will supply the crude, mainly from their joint venture
operations with Nigerian state oil firm, the NNPCL.