The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has addressed the challenges International Oil Companies face in allocating sufficient crude oil to domestic refiners, including the Dangote Petroleum Refinery, under the Domestic Crude Oil Supply Obligation framework.
Lokpobiri stated that most IOCs had signed pre-production agreements with long-term buyers, committing their crude supply before production even begins.
As a result, local refiners like Dangote Petroleum Refinery struggle to secure the allocations required under the DCSO framework.