NUPRC Plans Domestic Crude Oil, Gas Swap to Cut Costs, Boost Local Supply

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is consulting stakeholders across the oil and gas industry on the introduction of a domestic crude oil and gas swap arrangement aimed at reducing costs and improving the availability of petroleum products in Nigeria.

The NUPRC chief executive, Oritsemeyiwa Eyesan, disclosed this during a courtesy visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, according to head, Media and Corporate Communications, Eniola Akinkuotu, in a statement on Friday.

Eyesan said the proposed swap mechanism, once its modalities are finalised, would strengthen compliance with the Domestic Crude Supply Obligation (DCSO) and the Domestic Gas Supply Obligation.

She added that the initiative would be coordinated in collaboration with the Gas Aggregation Company of Nigeria Limited (GACN).

The proposed crude and gas swap arrangement is expected to support local refining, reduce supply costs and enhance the availability of petroleum products in the domestic market.

This, she said, would also be coordinated along with the Gas Aggregation Company Nigeria Limited (GACN)

Recall that latest statistics by the Commission showed a improvement in domestic crude supply to local refiners. A total of 53.7 million barrels of crude oil were supplied to local refiners between April and June, showing an overall performance of 97.4 per cent for Q2 2026. However, importation of crude oil persists.

Eyesan stated that the Commission was in discussions with stakeholders on the way forward.

She 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 offtaker.

“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.”

The NUPRC boss noted that in the case of crude oil, discussions were still at an early stage.

Eyesan promised to deepen collaboration with the NMDPRA in the overall interest of the sector.

In his remarks, the NMDPRA chief executive, Rabiu Abdullahi Umar, hailed the Commission for conducting a seamless and credible 2025 licensing round.

He also lauded the NUPRC for the improvement in the enforcement of the domestic crude supply to local refiners.

Umar said even though the Petroleum Industry Act stipulates that all transactions will be done on a willing buyer, willing seller basis, issues of pricing remain a major factor.

The NMDPRA therefore expressed support for the creation of strategic reserves which will boost energy security and ensure price stability.