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ARTICLE · 22 OCTOBER 2024

Implementation Framework And Potential Implications Of The Domestic Crude Supply Obligations ("DCS0")

Tope Adebayo LP
Tope Adebayo LP
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While reiterating commitment to the development of the domestic crude oil market driven by willing buyer-willing seller arrangements, the Petroleum Industry Act 2021 ("PIA") permits the imposition...

NigeriaEnergy and Natural Resources
Aderemi Ogunbanjo
Aderemi Ogunbanjo
Oluwaseun Fapohunda
Oluwaseun Fapohunda
Sandra Osinachi-Nwandem
Sandra Osinachi-Nwandem
Eyitayo Ajisafe
Eyitayo Ajisafe
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INTRODUCTION

While reiterating commitment to the development of the domestic crude oil market driven by willing buyer-willing seller arrangements, the Petroleum Industry Act 2021 ("PIA") permits the imposition of Domestic Crude Oil Supply Obligations ("DCSO") by the Nigerian Upstream Petroleum Regulatory Commission ("NUPRC" or the "Commission") on lessees of upstream petroleum operations ("lessees") towards enhancing local refining capacity, preventing shortages and inadequate supply, supporting strategic economic development and promoting energy security.

ROLES OF REGULATORS

Both the Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority ("NMDPRA" or the "Authority") are responsible for the implementation of the DCSOs. The Commission, however, has oversight responsibility for ensuring effective implementation. This is notwithstanding the Minister of Petroleum's right of pre-emption of petroleum and petroleum products in the

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