NUPRC proposes crude swap to cut refinery costs, boost supply
The NUPRC is consulting on a domestic crude oil swap arrangement to cut refinery supply costs, boost availability, and improve compliance with domestic sup Read More: https://punchng.com/nuprc-proposes-crude-swap-to-cut-refinery-costs-boost-supply/
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has initiated discussions with industry stakeholders on a domestic crude oil and gas swap arrangement. This proposal aims to lower supply costs, ensure a greater supply of crude to refineries, and improve compliance with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation (DGSO).
NUPRC Chief Executive, Oritsemeyiwa Eyesan, explained that the swap would enable producers with export facilities to meet obligations closer to refineries, eliminating unnecessary long-distance transportation. While crude deliveries to domestic refiners have improved, imports continue to occur due to premium pricing and competitive pressures.
The NUPRC is consulting stakeholders to finalize the swap's mechanisms, with implementation awaiting agreement on the modalities. The NMDPRA's CEO, Rabiu Abdullahi Umar, praised the NUPRC's 2025 licensing round and enforcement of domestic crude supply to refineries, but emphasized the importance of addressing pricing in domestic crude transactions.
Written by urgent.news from Punch Nigeria's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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