NUPRC urges refiners to acquire oil blocks

The Nigerian Upstream Petroleum Regulatory Commission has urged members of the Crude Oil Refinery Owners Association of Nigeria to consider acquiring oil blocks in upcoming licensing rounds as a long-term solution to crude supply challenges.

The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, made the call during a recent courtesy visit by CORAN members to the NUPRC headquarters in Abuja, where both parties discussed ways to strengthen domestic refining capacity and ensure sustainable crude supply.

According to details of the meeting provided by the CORAN spokesperson, Eche Idoko, on Friday, Eyesan said, “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.”

She assured the refiners that Nigeria has adequate crude resources to meet domestic refining needs and reiterated the commission’s commitment to policies that promote in-country value addition.

The NUPRC boss also advised refinery operators to adopt long-term crude supply contracts with producers as a practical approach to guaranteeing feedstock availability, improving operational planning, and achieving pricing stability.

However, she noted that infrastructure gaps remain a major hurdle to seamless crude delivery, citing inadequate pipeline networks, evacuation bottlenecks, storage constraints, marine logistics, and other supply chain challenges as areas requiring urgent investment and coordinated efforts.

Members of CORAN commended the commission’s ongoing regulatory reforms and its support for domestic refining, while stressing the need for effective implementation of frameworks that ensure consistent crude supply to local refineries.

Industry stakeholders have repeatedly highlighted that improved access to crude feedstock is critical to reducing Nigeria’s dependence on imported petroleum products, enhancing energy security, conserving foreign exchange, and creating jobs through the growth of local refining capacity.

Idoko said the meeting is part of ongoing engagements between regulators and private refinery operators aimed at unlocking the full potential of Nigeria’s downstream petroleum sector.