The Federal Government and crude oil producers in Nigeria have agreed to work toward a sustainable supply of crude oil to local refineries under a market-determined pricing system.
The aim is to ensure that while the operators do business optimally, the refineries are not starved of feedstock.
The producers under the umbrella of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI), at a virtual meeting held with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and all the international oil companies (IOCs), agreed to concede to a framework that would be mutually beneficial and ensure that local refineries are not strangulated due to off-the-curve prices.
The focus of the meeting held at the instance of the Commission Chief Executive (CCE), Gbenga Komolafe, an engineer, was on the status review of the Framework for Seamless Operationalisation of Domestic Crude Oil Supply Obligation Template.
Speaking exclusively with The Nation yesterday, Komolafe explained that contrary to a report making the rounds that the decision was to placate certain interests, it was indeed targeted at ensuring energy security for the country.
