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From Adanna Nnamani
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it is consulting with stakeholders in the oil and gas industry on the proposed introduction of a domestic crude oil and gas swap arrangement aimed at reducing costs and improving the availability of petroleum products in the country.
The Commission Chief Executive, NUPRC, Mrs Oritsemeyiwa Eyesan, disclosed this yesterday during a courtesy visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
Eyesan said the proposed arrangement, when finalised, would improve compliance with the Domestic Crude Supply Obligation (DCSO) and the Domestic Gas Supply Obligation.
She added that the initiative would be coordinated with the Gas Aggregation Company Nigeria Limited (GACN).
According to her, the swap arrangement would enable oil and gas operators to meet their domestic supply obligations without necessarily transporting commodities over long distances, thereby reducing logistics costs.
She explained that an operator with an obligation close to an export facility could swap with another operator whose obligation is closer to a domestic off-taker.
“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,” she said.
Eyesan, however, noted that discussions on the crude oil component of the proposed swap were still at an early stage, stressing that the Commission was engaging relevant stakeholders to determine the best way forward.
The NUPRC boss said the initiative was part of broader efforts to deepen domestic supply and strengthen collaboration across the petroleum sector.
Latest statistics from the Commission showed a significant improvement in crude oil supply to local refiners, with 53.7 million barrels supplied between April and June 2026.
The figure represented an overall performance of 97.4 per cent under the domestic crude supply obligation for the second quarter of 2026.
Despite the improvement, importation of crude oil into the country persists, prompting the Commission to explore additional mechanisms to improve the availability and movement of locally produced crude.
Eyesan also pledged to deepen collaboration with the NMDPRA in the overall interest of the petroleum industry.
In his remarks, the NMDPRA Chief Executive, Mallam Rabiu Abdullahi Umar, congratulated the NUPRC on what he described as a seamless and credible 2025 licensing round.
He also commended the Commission for its improved enforcement of the domestic crude supply obligation to local refineries.
Umar, however, noted that while the Petroleum Industry Act provides that transactions should be conducted on a willing-buyer, willing-seller basis, pricing remained a major factor in domestic crude supply.
He said the NMDPRA supported the creation of strategic petroleum reserves, noting that such reserves would help strengthen the country’s energy security and promote price stability.
