NUPRC plans crude swap to boost refinery supply

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has initiated consultations with industry stakeholders on a domestic crude oil and gas swap arrangement to enhance supply costs, increase availability of crude for Nigerian refineries, and reduce the need for long-distance transportation. NUPRC Chief Executive, Oritsemeyiwa Eyesan, revealed this during a meeting with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.

The swap would allow producers and refiners to optimize existing logistics and supply networks, as well as involve the Gas Aggregation Company Nigeria Limited. The arrangement aims to comply with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation while addressing issues of premium pricing for locally supplied crude.

The NMDPRA CEO, Rabiu Abdullahi Umar, commended the NUPRC for improving enforcement of domestic crude supply to local refineries and supporting the establishment of strategic petroleum reserves to strengthen energy security and price stability.