NUPRC Proposes Crude Oil, Gas Swap To Boost Domestic Supply

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

The NUPRC Chief Executive Officer, Dr Oritsemeyiwa Eyesan, disclosed this during a courtesy visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.

Eyesan said the proposed arrangement, once finalised, would improve compliance with the Domestic Crude Supply Obligation (DCSO) and the Domestic Gas Supply Obligation.

She explained that the scheme would allow producers and suppliers to meet their domestic supply obligations through coordinated exchanges, thereby reducing the need to transport crude oil and gas across long distances.

“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,” Eyesan said.

She added that the initiative would be coordinated with the Gas Aggregation Company Nigeria Limited (GACN), while discussions on the crude oil component remained at an early stage.

Eyesan also pledged to strengthen collaboration between the NUPRC and NMDPRA to promote the overall development of Nigeria’s petroleum industry.

The NMDPRA Chief Executive, Mallam Rabiu Umar, commended the NUPRC for conducting what he described as a seamless and credible 2025 licensing round.

Umar also praised the commission’s improved enforcement of domestic crude supply to local refineries.

He noted, however, that although the Petroleum Industry Act provides for transactions based on willing buyer and willing seller principles, pricing remains a major consideration.

The NMDPRA consequently expressed support for the establishment of strategic reserves, saying they would strengthen Nigeria’s energy security and contribute to price stability.

Meanwhile, NUPRC data showed that domestic crude supply to local refineries improved significantly in the second quarter of 2026.

According to the commission, local refiners received 53.7 million barrels of crude oil between April and June, representing an overall compliance performance of 97.4 per cent during the period.