NUPRC urges refiners to acquire oil blocks

In a move aimed at bolstering Nigeria's domestic refining capacity and ensuring a stable supply of crude oil, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has strongly encouraged members of the Crude Oil Refinery Owners Association of Nigeria (CORAN) to actively participate in upcoming oil block licensing rounds. This initiative, spearheaded by NUPRC Chief Executive Mrs. Oritsemeyiwa Eyesan, seeks to create a more robust and self-sufficient petroleum sector.

Eyesan articulated that encouraging indigenous refiners to engage in upstream asset ownership is a strategic long-term solution to the persistent crude supply challenges faced by local refineries. By securing direct access to crude resources, refiners can establish more stable and commercially viable supply arrangements. This approach not only benefits the refiners but also aims to deepen local participation across the entire petroleum value chain, aligning with Nigeria's goals for greater in-country value addition.

Beyond acquiring oil blocks, Eyesan also advised refinery operators to adopt long-term crude supply contracts with producers. This practical approach is intended to guarantee feedstock availability, enhance operational planning, and achieve greater pricing stability. The NUPRC reiterated its commitment to policies that support domestic refining and assured stakeholders that Nigeria possesses adequate crude resources to meet these needs.

However, the NUPRC acknowledged that significant infrastructure gaps remain a critical impediment to the seamless delivery of crude oil. Inadequate pipeline networks, evacuation bottlenecks, storage constraints, and marine logistics were identified as key areas requiring urgent investment and coordinated efforts. CORAN members, while commending the NUPRC's reforms, stressed the importance of effective implementation of frameworks to ensure consistent crude supply, underscoring the collaborative effort needed to unlock the full potential of Nigeria's downstream petroleum sector.

“

Encouraging indigenous refiners to participate in upstream asset ownership would create more stable and commercially viable crude supply arrangements while also deepening local participation across the petroleum value chain.