The imposition of the Domestic Crude Supply Obligation (DCSO) by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is integral to Nigeria’s journey towards self-sufficiency given that balance must be sought amongst the commercial goals of oil producers, the need for energy security and the optimal utilization of domestic refining capacity. Further to the Petroleum Industry Act, 2021 (PIA), the NUPRC issued the Production Curtailment and Domestic Crude Oil Supply Obligation Regulations, 2023 (the Regulations) and the Guidelines for the Operationalisation of Domestic Crude Oil Supply Obligation, 2024 (the Guidelines) (together with the PIA, the DCSO Framework) to provide a comprehensive blueprint for the implementation of DCSO.
In this issue, we explore critical provisions of the DCSO Framework, including its objectives and key compliance requirements for crude oil producers.
