The Dangote Petroleum Refinery and other local refineries could have saved between $246.6m and $328.8m on crude supplied to them in the first half of 2026 if the proposed crude swap arrangement had been in operation.On Friday, The PUNCH reported that the Nigerian Upstream Petroleum Regulatory Commission confirmed the commencement of consultations with relevant industry stakeholders on a domestic crude oil and gas swap arrangement aimed at cutting supply costs and ensuring more crude is available to Nigerian refineries.The initiative is expected to strengthen compliance with the Domestic Crude Supply Obligation and Domestic Gas Supply Obligation while reducing the need to physically transport crude over long distances to meet supply requirements.The between $246.6m and $328.8m potential savings are based on 82.2 million barrels of crude supplied to domestic refineries under the Domestic Crude Supply Obligation between January and June and an estimated $3-$4 per barrel reduction in logistics and associated acquisition costs under the proposed swap framework.If domestic refineries receive a similar 82.2 million barrels of crude in the next six months, the proposed swap arrangement could save them between $246.6m and $328.8m, based on the estimated $3-$4 reduction in logistics and related crude acquisition costs per barrel.The figure is a projection and does not represent money already saved, as the proposed swap framework was not operational during the January-June period.The National Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, told The PUNCH on Sunday in Abuja that the proposed arrangement would eliminate costly transportation of crude from distant locations to refineries by allowing refiners to take delivery from the nearest available crude terminal.Idoko said logistics costs could sometimes exceed $4 per barrel, particularly where barging was involved. He said, “Yes, the crude swap will save around $3-$4 per barrel.“The logistics costs of taking crude from afar are hovering between $3 and $4. If they are trucking it, it is between $3-$4 extra. So, the swap eliminates this. It would no longer apply. Sometimes, it is more, like $5. If you are doing barging like Dangote, it is as high as $12. A swap saves this amount in logistics.”If the proposed crude swap eliminates an additional $3 to $4 per barrel in costs, Nigeria could save between $246.6m and $328.8m on the 82.2 million barrels of crude supplied in the first half of 2026.Based on the $3 per barrel saving, the 82.2 million barrels supplied between January and June would translate to $246.6m in savings. At $4 per barrel, the savings would rise to $328.8m.Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. On Friday, The PUNCH reported that the Nigerian Upstream Petroleum Regulatory Commission confirmed the commencement of consultations with relevant industry stakeholders on a domestic crude oil and gas swap arrangement aimed at cutting supply costs and ensuring more crude is available to Nigerian refineries.The initiative is expected to strengthen compliance with the Domestic Crude Supply Obligation and Domestic Gas Supply Obligation while reducing the need to physically transport crude over long distances to meet supply requirements.The between $246.6m and $328.8m potential savings are based on 82.2 million barrels of crude supplied to domestic refineries under the Domestic Crude Supply Obligation between January and June and an estimated $3-$4 per barrel reduction in logistics and associated acquisition costs under the proposed swap framework.If domestic refineries receive a similar 82.2 million barrels of crude in the next six months, the proposed swap arrangement could save them between $246.6m and $328.8m, based on the estimated $3-$4 reduction in logistics and related crude acquisition costs per barrel.The figure is a projection and does not represent money already saved, as the proposed swap framework was not operational during the January-June period.The National Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, told The PUNCH on Sunday in Abuja that the proposed arrangement would eliminate costly transportation of crude from distant locations to refineries by allowing refiners to take delivery from the nearest available crude terminal.Idoko said logistics costs could sometimes exceed $4 per barrel, particularly where barging was involved. He said, “Yes, the crude swap will save around $3-$4 per barrel.“The logistics costs of taking crude from afar are hovering between $3 and $4. If they are trucking it, it is between $3-$4 extra. So, the swap eliminates this. It would no longer apply. Sometimes, it is more, like $5. If you are doing barging like Dangote, it is as high as $12. A swap saves this amount in logistics.”If the proposed crude swap eliminates an additional $3 to $4 per barrel in costs, Nigeria could save between $246.6m and $328.8m on the 82.2 million barrels of crude supplied in the first half of 2026.Based on the $3 per barrel saving, the 82.2 million barrels supplied between January and June would translate to $246.6m in savings. At $4 per barrel, the savings would rise to $328.8m.Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. The initiative is expected to strengthen compliance with the Domestic Crude Supply Obligation and Domestic Gas Supply Obligation while reducing the need to physically transport crude over long distances to meet supply requirements.The between $246.6m and $328.8m potential savings are based on 82.2 million barrels of crude supplied to domestic refineries under the Domestic Crude Supply Obligation between January and June and an estimated $3-$4 per barrel reduction in logistics and associated acquisition costs under the proposed swap framework.If domestic refineries receive a similar 82.2 million barrels of crude in the next six months, the proposed swap arrangement could save them between $246.6m and $328.8m, based on the estimated $3-$4 reduction in logistics and related crude acquisition costs per barrel.The figure is a projection and does not represent money already saved, as the proposed swap framework was not operational during the January-June period.The National Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, told The PUNCH on Sunday in Abuja that the proposed arrangement would eliminate costly transportation of crude from distant locations to refineries by allowing refiners to take delivery from the nearest available crude terminal.Idoko said logistics costs could sometimes exceed $4 per barrel, particularly where barging was involved. He said, “Yes, the crude swap will save around $3-$4 per barrel.“The logistics costs of taking crude from afar are hovering between $3 and $4. If they are trucking it, it is between $3-$4 extra. So, the swap eliminates this. It would no longer apply. Sometimes, it is more, like $5. If you are doing barging like Dangote, it is as high as $12. A swap saves this amount in logistics.”If the proposed crude swap eliminates an additional $3 to $4 per barrel in costs, Nigeria could save between $246.6m and $328.8m on the 82.2 million barrels of crude supplied in the first half of 2026.Based on the $3 per barrel saving, the 82.2 million barrels supplied between January and June would translate to $246.6m in savings. At $4 per barrel, the savings would rise to $328.8m.Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. The between $246.6m and $328.8m potential savings are based on 82.2 million barrels of crude supplied to domestic refineries under the Domestic Crude Supply Obligation between January and June and an estimated $3-$4 per barrel reduction in logistics and associated acquisition costs under the proposed swap framework.If domestic refineries receive a similar 82.2 million barrels of crude in the next six months, the proposed swap arrangement could save them between $246.6m and $328.8m, based on the estimated $3-$4 reduction in logistics and related crude acquisition costs per barrel.The figure is a projection and does not represent money already saved, as the proposed swap framework was not operational during the January-June period.The National Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, told The PUNCH on Sunday in Abuja that the proposed arrangement would eliminate costly transportation of crude from distant locations to refineries by allowing refiners to take delivery from the nearest available crude terminal.Idoko said logistics costs could sometimes exceed $4 per barrel, particularly where barging was involved. He said, “Yes, the crude swap will save around $3-$4 per barrel.“The logistics costs of taking crude from afar are hovering between $3 and $4. If they are trucking it, it is between $3-$4 extra. So, the swap eliminates this. It would no longer apply. Sometimes, it is more, like $5. If you are doing barging like Dangote, it is as high as $12. A swap saves this amount in logistics.”If the proposed crude swap eliminates an additional $3 to $4 per barrel in costs, Nigeria could save between $246.6m and $328.8m on the 82.2 million barrels of crude supplied in the first half of 2026.Based on the $3 per barrel saving, the 82.2 million barrels supplied between January and June would translate to $246.6m in savings. At $4 per barrel, the savings would rise to $328.8m.Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. If domestic refineries receive a similar 82.2 million barrels of crude in the next six months, the proposed swap arrangement could save them between $246.6m and $328.8m, based on the estimated $3-$4 reduction in logistics and related crude acquisition costs per barrel.The figure is a projection and does not represent money already saved, as the proposed swap framework was not operational during the January-June period.The National Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, told The PUNCH on Sunday in Abuja that the proposed arrangement would eliminate costly transportation of crude from distant locations to refineries by allowing refiners to take delivery from the nearest available crude terminal.Idoko said logistics costs could sometimes exceed $4 per barrel, particularly where barging was involved. He said, “Yes, the crude swap will save around $3-$4 per barrel.“The logistics costs of taking crude from afar are hovering between $3 and $4. If they are trucking it, it is between $3-$4 extra. So, the swap eliminates this. It would no longer apply. Sometimes, it is more, like $5. If you are doing barging like Dangote, it is as high as $12. A swap saves this amount in logistics.”If the proposed crude swap eliminates an additional $3 to $4 per barrel in costs, Nigeria could save between $246.6m and $328.8m on the 82.2 million barrels of crude supplied in the first half of 2026.Based on the $3 per barrel saving, the 82.2 million barrels supplied between January and June would translate to $246.6m in savings. At $4 per barrel, the savings would rise to $328.8m.Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. The figure is a projection and does not represent money already saved, as the proposed swap framework was not operational during the January-June period.The National Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, told The PUNCH on Sunday in Abuja that the proposed arrangement would eliminate costly transportation of crude from distant locations to refineries by allowing refiners to take delivery from the nearest available crude terminal.Idoko said logistics costs could sometimes exceed $4 per barrel, particularly where barging was involved. He said, “Yes, the crude swap will save around $3-$4 per barrel.“The logistics costs of taking crude from afar are hovering between $3 and $4. If they are trucking it, it is between $3-$4 extra. So, the swap eliminates this. It would no longer apply. Sometimes, it is more, like $5. If you are doing barging like Dangote, it is as high as $12. A swap saves this amount in logistics.”If the proposed crude swap eliminates an additional $3 to $4 per barrel in costs, Nigeria could save between $246.6m and $328.8m on the 82.2 million barrels of crude supplied in the first half of 2026.Based on the $3 per barrel saving, the 82.2 million barrels supplied between January and June would translate to $246.6m in savings. At $4 per barrel, the savings would rise to $328.8m.Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. The National Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, told The PUNCH on Sunday in Abuja that the proposed arrangement would eliminate costly transportation of crude from distant locations to refineries by allowing refiners to take delivery from the nearest available crude terminal.Idoko said logistics costs could sometimes exceed $4 per barrel, particularly where barging was involved. He said, “Yes, the crude swap will save around $3-$4 per barrel.“The logistics costs of taking crude from afar are hovering between $3 and $4. If they are trucking it, it is between $3-$4 extra. So, the swap eliminates this. It would no longer apply. Sometimes, it is more, like $5. If you are doing barging like Dangote, it is as high as $12. A swap saves this amount in logistics.”If the proposed crude swap eliminates an additional $3 to $4 per barrel in costs, Nigeria could save between $246.6m and $328.8m on the 82.2 million barrels of crude supplied in the first half of 2026.Based on the $3 per barrel saving, the 82.2 million barrels supplied between January and June would translate to $246.6m in savings. At $4 per barrel, the savings would rise to $328.8m.Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. Idoko said logistics costs could sometimes exceed $4 per barrel, particularly where barging was involved. He said, “Yes, the crude swap will save around $3-$4 per barrel.“The logistics costs of taking crude from afar are hovering between $3 and $4. If they are trucking it, it is between $3-$4 extra. So, the swap eliminates this. It would no longer apply. Sometimes, it is more, like $5. If you are doing barging like Dangote, it is as high as $12. A swap saves this amount in logistics.”If the proposed crude swap eliminates an additional $3 to $4 per barrel in costs, Nigeria could save between $246.6m and $328.8m on the 82.2 million barrels of crude supplied in the first half of 2026.Based on the $3 per barrel saving, the 82.2 million barrels supplied between January and June would translate to $246.6m in savings. At $4 per barrel, the savings would rise to $328.8m.Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. “The logistics costs of taking crude from afar are hovering between $3 and $4. If they are trucking it, it is between $3-$4 extra. So, the swap eliminates this. It would no longer apply. Sometimes, it is more, like $5. If you are doing barging like Dangote, it is as high as $12. A swap saves this amount in logistics.”If the proposed crude swap eliminates an additional $3 to $4 per barrel in costs, Nigeria could save between $246.6m and $328.8m on the 82.2 million barrels of crude supplied in the first half of 2026.Based on the $3 per barrel saving, the 82.2 million barrels supplied between January and June would translate to $246.6m in savings. At $4 per barrel, the savings would rise to $328.8m.Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. If the proposed crude swap eliminates an additional $3 to $4 per barrel in costs, Nigeria could save between $246.6m and $328.8m on the 82.2 million barrels of crude supplied in the first half of 2026.Based on the $3 per barrel saving, the 82.2 million barrels supplied between January and June would translate to $246.6m in savings. At $4 per barrel, the savings would rise to $328.8m.Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. Based on the $3 per barrel saving, the 82.2 million barrels supplied between January and June would translate to $246.6m in savings. At $4 per barrel, the savings would rise to $328.8m.Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. Data for the period showed that 28.5 million barrels were supplied in the first quarter, averaging 316,667 barrels per day. At a $3 per barrel saving, this would amount to $85.5m, while a $4 saving would translate to $114m.In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. In the second quarter, crude supply rose to 53.7 million barrels, averaging 590,110 barrels per day. The corresponding savings would be $161.1m at $3 per barrel and $214.8m at $4 per barrel.Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. Cumulatively, 82.2 million barrels were supplied in the first six months of 2026, representing an average of 454,144 barrels per day. The figures indicate that maintaining the same volume of crude supply over a six-month period could deliver substantial cost savings if the proposed crude swap succeeds in eliminating the additional $3 to $4 per barrel costs.At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. At the higher end of the estimate, the $328.8m savings over six months would represent the amount that could be saved if the same volume of crude is supplied and the proposed swap consistently removes $4 in additional costs from each barrel.The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. The NUPRC figures show that domestic refineries received 28.5 million barrels in the first quarter, while another 53.7 million barrels were supplied in the second quarter, bringing the six-month total to 82.2 million barrels.At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. At $3 per barrel, the potential savings on the H1 volume are $246.6m, while a $4 per barrel saving would amount to $328.8m. The first-quarter supply averaged about 316,667 barrels per day, while second-quarter deliveries averaged approximately 590,110 bpd. For the six months, average actual supply stood at about 454,144 bpd.Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. Idoko said the proposed framework emerged from consultations among refiners, producers and regulators on ways to improve access to crude and reduce costs that have continued to undermine refinery operations.Related NewsFG offers 70:30 profit oil split for new fieldsOMO yield premium attracts N4.93tn investor demandCBN boosts FX interventions to $953m as demand reboundsHe disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. He disclosed that industry stakeholders had agreed to establish a crude trading platform for domestic refiners, alongside the proposed swap mechanism.He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. He said, “Yes, we are involved in the conversation. We had a roundtable on Thursday where we agreed, and far-reaching decisions were made on how we can collaborate on how we can improve access to crude for local refineries. Part of what was agreed was to set up a crude trading platform for local refineries in Nigeria where we can get crude. Another fallout from that was the crude swap arrangements too.”Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. Explaining how the arrangement would work, Idoko said a refinery would be allowed to take crude from a producer or export terminal closer to it, while the parties would subsequently reconcile the volumes at the original export terminal.He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. He gave the example of a refinery requiring crude from a producer whose supply was located far away, while another producer had crude closer to the refinery.He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. He said, “The swap simply means you can swap crude for refineries as a crude producer. With this method, refineries can pick product from the closest crude export terminal, and then reconciliation can be made between the supplier and the owners of the crude; the person who swapped the crude with them. So the swap back will be at the export terminal.”Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. Idoko explained that if Shell was required to supply crude to Aradel from Bonny, but another producer had crude closer to Aradel, the nearby producer could supply the refinery while the two producers subsequently reconciled the volumes at Bonny.He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. He said the arrangement would involve the refinery, the company facilitating the swap and the Nigerian Upstream Petroleum Regulatory Commission. “So, the framework is still being developed, and I am sure that once the platform is ready for trading, all those guidelines will be clearly set out,” he added.The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. The CORAN spokesman said the swap would not change the international price of crude but would remove additional costs that make locally sourced crude expensive for refiners.He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. He said, “The idea of the swapping was to cut other costs that would be associated with getting crude as well as making it available. Another thing we had complained about was how to remove logistics costs, especially for local and modular refineries where margins are very small.”He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. He added, “In terms of pricing, the international price still remains the same. It won’t change. But what we have argued is that there are other components associated with it that, if removed, would give cheaper crude and comparative advantage in the market. The government acknowledged, producers also acknowledged and decided to deal with comparative logistics costs.”The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. The proposed arrangement will operate within the existing DCSO framework, under which NUPRC allocates crude to domestic refineries.Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. Idoko said Dangote Refinery would also benefit from the arrangement. “Dangote will get through the same method. If Dangote wants to buy from Chevron and if they are close to the refinery, Chevron can tell NNPC to supply the crude, and when there is export, they reconcile the product. So this is something that will allow products to move freely, and it is very flexible,” he said.Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. Idoko said NUPRC was working on the framework but stressed that establishing a transparent trading platform involving several industry players would take time. He said, “NUPRC is working vigorously. So they are working on it. It is a whole lot of process. Before, crude processing was done in silos between buyers and sellers. But now, they are setting up a platform that brings everyone together.”He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. He said the new approach was different because it would bring the two petroleum regulators together, with NUPRC overseeing crude supply and the Nigerian Midstream and Downstream Petroleum Regulatory Authority providing demand information.“This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. “This is different from every other organisation for two reasons. The two major regulators are working together on this. The PIA allows it. Volume traded through DCSO will be deployed for it. NMDPRA will request the numbers, and NUPRC will see to the supply. That collaboration is needed, and we have gotten it,” Idoko said.He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. He said producers and refiners, including the Oil Producers Trade Section, CORAN and the Independent Petroleum Producers Group, had agreed to support the initiative. “The body language is positive. In a few months, we will see a complete change in the supply and trading framework,” he added.The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. The proposed reform comes amid persistent complaints by domestic refiners about the cost and availability of crude. In the first quarter, NUPRC said 61.9 million barrels were allocated to domestic refineries, and 68.7 million barrels were offered by producers, but only 28.5 million barrels were actually supplied.The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries. The crude swap is therefore being positioned not only as a logistics cost-cutting measure but also as an attempt to close the gap between crude allocated, offered and ultimately delivered to Nigerian refineries.