NUPRC plans crude swap to boost refinery supply

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has begun discussions with industry stakeholders on a domestic crude oil and gas swap arrangement, aimed at reducing supply costs and ensuring a steady supply of crude for Nigerian refineries. NUPRC CEO Oritsemeyiwa Eyesan disclosed this during a visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.

The swap arrangement would allow producers and refiners to optimize existing logistics and supply networks, eliminating the need for unnecessary long-distance transportation of crude oil. Eyesan explained that producers with export facilities would be able to meet the obligations of inland producers, thus improving compliance with the Domestic Crude Supply Obligation and the Domestic Gas Supply Obligation.

The proposal comes as deliveries of crude to domestic refiners have seen a significant improvement, with the NUPRC reporting a 97.4% performance under the Domestic Crude Supply Obligation during the second quarter of 2026. However, crude imports continue to be utilized by some refiners, leading to high prices and undermining the competitiveness of domestic refining.

The NUPRC is still in the early stages of discussions on the swap arrangement, but the CEO pledges to strengthen collaboration with the NMDPRA to address challenges in the petroleum value chain. The NMDPRA's CEO, Rabiu Abdullahi Umar, praised the NUPRC for a successful licensing round in 2025 and the improved enforcement of domestic crude supply to local refineries.

He emphasized the importance of pricing in domestic crude transactions and expressed support for the establishment of strategic petroleum reserves to strengthen energy security and price stability.