NUPRC proposes crude swap to cut refinery costs, boost supply

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the start of talks with industry stakeholders on a domestic crude oil and gas swap plan, aiming to reduce supply costs and boost availability for Nigerian refineries. NUPRC Chief Executive Oritsemeyiwa Eyesan revealed this during a visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja.

In a statement, NUPRC Head of Media and Corporate Communications Eniola Akinkuotu explained the swap would allow producers and refiners to optimize existing logistics and networks, while the Gas Aggregation Company Nigeria Limited would be involved. The swap would let producers with export facilities meet obligations of those closer to refineries, eliminating unnecessary long-distance transport.

Eyesan said the commission was consulting widely to finalize the details, which would help improve compliance with domestic crude and gas supply obligations. Despite recent improvements in crude deliveries to refineries, imports still occur, with refiners complaining about premium prices paid for locally supplied crude. Eyesan acknowledged these discussions were early stages and further agreement on modalities was needed before implementation.

NMDPRA CEO Rabiu Abdullahi Umar praised the NUPRC's 2025 licensing round and its enforcement of domestic crude supply, but noted pricing remains crucial to the refining industry's viability. The NMDPRA supported the creation of strategic petroleum reserves to enhance energy security and price stability.