NUPRC Proposes Domestic Crude Swap to Cut Refining Costs

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is considering a domestic crude swap framework that could reduce costs for local refiners by an estimated $3 to $4 per barrel. NUPRC Chief Executive Oritsemeyiwa Eyesan announced this initiative on Monday in Lagos during the OTL Africa Downstream Energy Week 2026, where she was represented by Assistant Director, Operations, Prosper Omonedo.

The framework would allow refiners to receive crude from nearby production or export points, minimizing transportation costs. Under Section 109 of the Petroleum Industry Act 2021, the NUPRC allocates crude oil to domestic refineries before export.

The proposal follows improved crude deliveries under the Domestic Crude Supply Obligation (DCSO), with 127 million barrels supplied to domestic refineries from Q1 to Q3 of 2026. In September, Nigeria recorded an average production of 1.717 million barrels per day, marking a 2.34 percent increase from August.

Eyesan also discussed the 2026 Licensing Round, emphasizing transparency and the drill-or-drop principle.