The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is weighing a domestic petroleum swap deal designed to optimize supply chain networks and deepen crude delivery to local refineries.
Oritsemeyiwa Eyesan, Commission Chief Executive, NUPRC, disclosed this move during a courtesy visit to the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) in Abuja.
The move according to Eyesan aims to streamline fulfillment of Domestic Crude and Gas Supply Obligations by allowing producers to trade delivery locations, thereby reduce cost and increase availability of products in the country.
Eyesan noted that once all the modalities are finalised, there would be an improved compliance with the Domestic Crude Supply Obligation (DCSO) and the Domestic Gas Supply Obligation. This, she said, would also be coordinated along with the Gas Aggregation Company Nigeria Limited (GACN).
Latest statistics by the Commission showed an improvement in domestic crude supply to local refiners, with a total of 53.7 million barrels of crude oil supplied to local refiners between April and June, showing an overall performance of 97.4 percent for Q2 2026.
She said, ‘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.’
The NUPRC boss noted that in the case of crude oil, discussions were still at an early stage, adding that the commission will deepen collaboration with the NMDPRA in the overall interest of the sector.
In his remarks, Rabiu Umar, Authority Chief Executive, NMDPRA, commended the Commission’s effort that led to a seamless and credible 2025 licensing round.
He also lauded the NUPRC for the improvement in the enforcement of the domestic crude supply to local refiners, adding that even though the Petroleum Industry Act stipulates that all transactions will be done on a willing buyer, willing seller basis, issues of pricing remain a major factor.
Umar further pledged the support of the NMDPRA towards the creation of strategic reserves which will boost energy security and ensure price stability.