NUPRC moves to introduce domestic crude, gas swap arrangement

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it is consulting stakeholders in the industry on the introduction of a domestic crude oil and gas swap arrangement to reduce costs and improve the availability of petroleum products in the country.

Oritsemeyiwa Eyesan, NUPRC chief executive officer (CEO), spoke during a courtesy visit to the commission in Abuja on Thursday.

“The NUPRC is consulting widely with stakeholders in the industry on the idea of a domestic crude oil and gas swap that would reduce cost and increase availability of products in the country,” Eyesan said.

According to a statement on Friday, she said the arrangement, once finalised, would improve compliance with the domestic crude supply obligation (DCSO) and domestic gas supply obligation.

This, Eyesan said, would also be coordinated along with the Gas Aggregation Company Nigeria (GACN) Limited.

On May 6, the NUPRC said it would continue to refine the DCSO framework to improve transparency and efficiency while sustaining crude oil production and ensuring adequate supply to domestic refineries.

In June 2023, the Nigerian National Petroleum Company (NNPC) Limited said it commenced the termination of crude oil swap contracts and would pay cash for petrol imports.

The development followed the removal of petrol subsidy in May 2023. (TheCable)