NUPRC Begins Talks on Crude Swap to Boost Supply to Nigerian Refineries
NUPRC Begins Talks on Crude Swap to Boost Supply to Nigerian Refineries
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has commenced consultations with relevant stakeholders on a proposed domestic crude oil and gas swap arrangement aimed at improving supply to Nigerian refineries and reducing logistics costs.
The proposed framework is expected to support compliance with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation (DGSO), while providing an alternative to the physical transportation of crude over long distances to meet domestic supply requirements.
Industry stakeholders have previously identified swap arrangements as a potential mechanism for addressing logistical and contractual challenges associated with meeting domestic crude supply obligations.
However, details of the proposed arrangement, including participating companies, volumes, pricing structure, implementation timeline and expected savings, have not been clearly disclosed in the report.
