Nigeria Cuts Deal with Producers to Supply Oil to Refiners at Market Price

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Nigeria News

Dangote,Fuel,Fuel Imports

The Nigerian Upstream Petroleum Regulatory Commission NUPRCreached an agreementwith oil producers to supply crude oil to domestic refineries at market prices on Wednesday,

The Nigerian Upstream Petroleum Regulatory Commission

reached an agreement with oil producers to supply crude oil to domestic refineries at market prices on Wednesday, ending a supply dispute that had strained relations with international oil companies. Nigeria imports most of its fuel needs due to inadequate refining capacity, although a 650,000 barrel-a-day refinery built by Africa's richest man Aliko Dangote, and operational since February, should produce more than enough for the country’s needs.

said in a statement it could not allow pricing to impede domestic refining, 'We will never allow price strangulation to disincentivize our domestic refining capacity optimization.' The oil and gas multinational divestment from the Niger Delta that kicked off over a decade has hit a peak.

 

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