NUPRC proposes crude swap to cut refinery costs, boost supply
The Nigerian Upstream Petroleum Regulatory Commission NUPRC has initiated discussions with industry stakeholders regarding a domestic crude oil and gas swap arrangement. This initiative aims to reduce supply costs and increase crude availability for Nigerian refineries. NUPRC Chief Executive, Oritsemeyiwa Eyesan, stated that the proposed swap would optimize existing logistics and supply networks, strengthening compliance with the Domestic Crude Supply Obligation and Domestic Gas Supply Obligation. The arrangement would allow crude producers with export facilities to fulfill obligations for producers closer to domestic refineries, eliminating unnecessary transportation. This proposal follows a significant improvement in crude deliveries to local refiners, with 53.7 million barrels supplied between April and June 2026, representing 97.4 percent performance under the DCSO. Despite this, some refiners still rely on foreign crude due to local crude being sold at premium prices. The NUPRC is consulting with stakeholders, including the Gas Aggregation Company Nigeria Limited, to finalize modalities. The Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA Chief Executive, Rabiu Abdullahi Umar, commended NUPRC's efforts but emphasized that pricing remains a critical factor for domestic refining viability. Both agencies aim to strengthen collaboration to address challenges across the petroleum value chain and ensure reliable, competitively priced crude supplies for
