Iocs Want Dollar Payment For 80% Crude Sale.

International Oil Companies are insisting that payments would be made in dollars and naira, and to purchase crude oil, modular refineries are to pay 80 per cent of the amount in the United States dollar, while 20 per cent is to be paid using the local currency.

Operators of modular refineries who participated in the meeting that gave rise to the development of the Domestic Crude Oil Supply Obligation template, said, the major crude oil suppliers, which the NUPRC agreed to, is that under a willing-buyer and willing-seller arrangement, the two parties should be allowed to use whatever currency they think is best.

The IOCs, however, agreed that modular refineries could pay the naira equivalent of the current rate of the dollar at any given time to an agreed account, while the Central Bank of Nigeria would remit the amount in dollars to the IOCs based on agreed terms, and can be done at the level of the Central Bank of Nigeria, though most of the rates are converging at the moment, both at the parallel and official markets.

It also said, in compliance with the provisions of Section 109(2) of the Petroleum Industry Act 2021, the NUPRC in a landmark move, had developed a template guiding the activities for Domestic Crude Oil Supply Obligation, as indigenous refiners would now purchase crude in naira or dollar.

Speaking on behalf of the group, the Publicity Secretary, CORAN, EcheIdoko, said, the CBN would give them the dollar equivalent, and the NUPRC said, the conversation would be mostly between the supplier of the crude oil and the buyer.