The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has commenced consultations with relevant stakeholders in the oil and gas industry on a proposed domestic crude oil and gas swap arrangement.
The initiative is aimed at reducing supply costs and ensuring that more crude oil is made available to refineries operating in Nigeria.
The NUPRC Chief Executive, Oritsemeyiwa Eyesan, disclosed this during a courtesy visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja on Thursday.
According to Eyesan, the proposed arrangement is expected to improve the efficiency of domestic crude oil supply while addressing some of the logistical challenges associated with meeting refinery requirements.
The initiative is also expected to strengthen compliance with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation (DGSO).
Under the proposed arrangement, stakeholders would explore ways of meeting domestic supply obligations without relying heavily on the physical transportation of crude oil over long distances.
The NUPRC said the move would help reduce the cost associated with transporting crude to meet supply requirements and make more crude available to Nigerian refineries.
The consultations form part of efforts to strengthen cooperation across Nigeria’s petroleum industry and support a more efficient domestic supply system for crude oil and gas.
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