NUPRC plans domestic crude, gas swap arrangement

THE Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is working with industry stakeholders on a proposed domestic crude oil and gas swap arrangement aimed at lowering costs and improving the supply of petroleum products.

Chief Executive Officer of the NUPRC, Ms Oritsemeyiwa Eyesan, disclosed this during a courtesy visit to the commission in Abuja on Thursday.

Eyesan said the commission was consulting widely with industry players on the proposed arrangement, which is expected to make crude and gas supplies more efficient for the domestic market.

According to a statement issued on Friday, the proposed swap mechanism would also drive compliance with the domestic crude supply obligation (DCSO) and domestic gas supply obligation.

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She added that the initiative would be coordinated alongside the Gas Aggregation Company Nigeria (GACN) Limited.

The NUPRC had said earlier in May that it would continue to refine the DCSO framework to enhance transparency and efficiency, while supporting crude oil production and ensuring sufficient supplies for domestic refineries.

The proposed arrangement comes after the Nigerian National Petroleum Company (NNPC) Limited announced in June 2023 that it had begun terminating crude oil swap contracts and would instead make cash payments for petrol imports.

The decision followed the removal of the petrol subsidy by the Federal Government in May 2023.