NUPRC proposes crude oil swap to boost domestic refinery supply

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has begun stakeholder consultations regarding a new framework for domestic crude oil and gas supply. A central component of this proposal is a crude oil swap arrangement designed to reduce logistics costs and improve feedstock availability for local refineries.

Under the proposed mechanism, producers with domestic supply obligations could exchange supplies based on their proximity to domestic offtakers rather than transporting crude over long distances. This would allow companies to settle transactions through a netting mechanism. The framework aims to improve compliance with Domestic Crude Supply Obligations (DCSO) and Domestic Gas Supply Obligations (DGSO).