Refiners eye $329m savings from proposed crude swap

Nigerian refineries could save between $246.6 million and $328.8 million on crude in the first half of 2026 if a proposed domestic crude swap arrangement comes into effect, according to a report by The PUNCH. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the start of consultations with industry stakeholders on the swap arrangement, aiming to cut supply costs and ensure more crude is available to refineries.

The savings are based on an estimated $3-$4 reduction in logistics and associated acquisition costs per barrel, with the swap framework expected to eliminate costly transportation of crude from distant locations to refineries. If implemented, the arrangement could save refineries a substantial amount, with a projected $328.8 million in savings for the six-month period, based on the estimated $4 reduction in logistics and related costs per barrel.