The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has commenced consultations with key stakeholders on a proposed domestic crude oil and gas swap arrangement aimed at reducing supply costs and improving crude availability for local refineries.
The initiative is designed to make the domestic supply system more efficient by allowing crude producers with access to export facilities to meet the obligations of producers located closer to domestic refineries.
NUPRC Chief Executive Officer, Oritsemeyiwa Eyesan, explained that the arrangement would reduce unnecessary transportation of crude across the country while enabling producers and refiners to effectively offset their respective supply obligations.
According to her, the proposed mechanism could strengthen compliance with the Domestic Crude Supply Obligation (DCSO) and the Domestic Gas Supply Obligation (DGSO) while reducing costs across the petroleum value chain.
Eyesan said the commission was exploring the arrangement because the continued reliance on imported crude by some domestic refineries made it necessary to develop more efficient mechanisms for allocating and delivering locally produced crude.
The NUPRC said discussions with industry stakeholders are still at an early stage, with the commission expected to finalise the necessary modalities before implementation.
The proposed swap comes amid broader efforts to improve crude supply to Nigerian refineries. Recent NUPRC data showed that domestic refineries received 53.7 million barrels of crude oil and condensate between April and June 2026, representing 97.4 per cent performance under the DCSO.
The commission also said it would continue working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to address challenges affecting the petroleum value chain.
If implemented, the crude swap arrangement could help lower logistics and supply costs, improve refinery utilisation and strengthen Nigeria’s drive towards greater domestic refining and reduced dependence on imported petroleum products.
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#NUPRC #CrudeOil #OilAndGas #Refineries #DangoteRefinery #Nigeria #PetroleumIndustry #CrudeSupply #Energy #OilProduction #DCSO #FuelSupply
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