Nigeria's NUPRC Plans Swap Framework for Oil Supply

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is working on a new framework for domestic crude oil and gas supply, aiming to reduce logistics costs and improve feedstock availability for local refineries.

Under the proposed swap arrangement, producers or suppliers with domestic supply obligations can exchange their obligations based on location proximity. Instead of moving crude over long distances, companies can agree to swap supplies and settle transactions through a netting mechanism.

NUPRC Chief Executive Mrs Oritsemeyiwa Eyesan said discussions on the proposed crude oil swap are still at an early stage. She explained that rather than trying to move from one end to the other, companies just agree on a swap arrangement and use a netting mechanism for transactions.

The framework aims to improve compliance with Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation (DGSO). The gas component will be coordinated with the Gas Aggregation Company of Nigeria Limited (GACN).