Key Points
- NUPRC is consulting stakeholders on a domestic crude and gas swap arrangement.
- The proposed system is expected to reduce logistics costs and improve product availability.
- Local refiners received 53.7 million barrels of crude in Q2 2026.
- NMDPRA supports strategic reserves to strengthen energy security and price stability.
Main Story
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is working with industry stakeholders on a proposed domestic crude oil and gas swap arrangement aimed at reducing costs and improving product availability.
NUPRC Chief Executive, Oritsemeyiwa Eyesan, disclosed this during a courtesy visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
Eyesan said the arrangement was still being discussed with stakeholders and would be implemented after the necessary modalities had been agreed.
She said the proposed mechanism could also improve compliance with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation, with coordination involving the Gas Aggregation Company Nigeria Limited (GACN).
Recent NUPRC figures showed that domestic crude deliveries to local refineries had improved significantly.
Local refiners received 53.7 million barrels of crude between April and June, representing 97.4 per cent performance for the second quarter of 2026.
Despite the improvement, Nigeria continues to import crude oil, prompting discussions on how domestic supply arrangements can be made more efficient.
Eyesan explained that a swap system could allow producers and off-takers to exchange supply obligations based on their locations instead of transporting crude over long distances.
She said discussions on applying the arrangement specifically to crude oil were still at an early stage.
Eyesan also pledged closer cooperation between NUPRC and NMDPRA to improve the performance of the petroleum sector.
The Issues
Although domestic crude supply to local refiners has improved, the continued need for crude imports has raised questions about the efficiency and cost of existing supply arrangements.
What’s Being Said
“How the swap works is that I have an obligation somewhere and I am close to an export facility. Somebody else has an obligation inland and his own facility is close to a domestic off-taker. So, instead of trying to move from one end to the other, we just agree on a swap arrangement and there is a mechanism for them netting off.” – Oritsemeyiwa Eyesan, NUPRC Chief Executive.
What’s Next
NUPRC is expected to continue consultations with industry stakeholders and finalise the framework for the proposed swap arrangement.
Bottom Line
The proposed crude and gas swap could help reduce supply and transportation costs while improving compliance with domestic supply obligations and the availability of petroleum products.
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