NUPRC Urges Local Refiners to Acquire Oil Blocks to Strengthen Crude Supply Chain

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has encouraged members of the Crude Oil Refinery Owners Association of Nigeria (CORAN) to consider acquiring oil blocks in future licensing rounds. The move, according to the commission, would help address long-standing crude supply challenges affecting local refineries and improve energy stability in the country.

The Chief Executive of the NUPRC, Mrs Oritsemeyiwa Eyesan, made the recommendation during a courtesy visit by CORAN members to the commission’s headquarters in Abuja. Discussions focused on strengthening Nigeria’s domestic refining capacity and ensuring a more reliable and sustainable crude supply framework for operators in the sector.

Eyesan explained that allowing indigenous refiners to take ownership of upstream assets would not only stabilize crude supply but also deepen local participation across the petroleum value chain. She also reaffirmed that Nigeria has sufficient crude reserves to meet domestic refining demand if properly managed and efficiently allocated.

In addition to upstream participation, she advised refinery operators to prioritize long-term crude supply agreements with producers. According to her, such contracts would improve planning, ensure steady feedstock availability, and reduce pricing uncertainty that often disrupts refinery operations. However, she acknowledged that infrastructure limitations—such as weak pipeline networks, storage gaps, and logistical bottlenecks—remain major barriers to seamless crude delivery.

CORAN members commended the NUPRC for its regulatory reforms and continued support for local refining, while emphasizing the need for consistent implementation of policies that guarantee access to crude. Industry stakeholders continue to stress that improving domestic crude supply is key to reducing Nigeria’s dependence on imported fuel, strengthening energy security, conserving foreign exchange, and creating jobs through expanded local refining capacity.

source: punch