NUPRC Develops Oil Swap Framework to Boost Supply

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has initiated consultations with stakeholders to establish a new framework for domestic crude oil and gas supply, which includes a proposed swap arrangement aimed at lowering logistics costs and improving feedstock availability for local refineries. NUPRC Chief Executive, Mrs Oritsemeyiwa Eyesan, announced this during a visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.

The proposed swap arrangement allows producers or suppliers with domestic supply obligations to exchange their obligations based on crude location and proximity to domestic offtakers. This approach aims to enhance compliance with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation (DGSO).

Recent data indicated that domestic refineries received 53.7 million barrels of crude from April to June 2026, achieving a 97.4% compliance rate under the DCSO. Despite this improvement, the NUPRC is exploring additional measures to address ongoing crude import needs and enhance domestic supply efficiency.