Nigeria is considering changes to its domestic crude supply and pricing rules to improve access to feedstock for local refineries, including the Dangote Petroleum Refinery.
The proposed changes are expected to be discussed this week as regulators review the country’s domestic crude supply obligation, which requires oil producers to offer crude to Nigerian refiners before exporting it.
The Crude Oil Refinery-owners Association of Nigeria (CORAN) said the review could address some of the pricing and supply challenges facing refiners. Dangote Refinery has previously said Nigeria’s pricing structure can add between $3 and $4 per barrel to its crude costs because purchases are routed through producers’ trading arms, according to a Reuters report.
Analysts have also identified pricing, rather than a lack of physical crude, as one of the biggest obstacles to domestic crude transactions.
Refiners seek better access to local crude
