Yemisi Izuora
To ensure effective crude delivery to boost capacity of local refineries the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has advised refinery operators to adopt long-term crude supply contracts with producers as a practical approach guaranteeing feedstock availability, improving operational planning, and achieving pricing stability.
Dr Oritsemeyiwa Eyesan, the Chief Executive Officer of the Commission also urged members of the Crude Oil Refinery Owners Association of Nigeria (ORAN) to consider acquiring oil blocks in the upcoming licensing rounds as a long-term solution to crude supply challenges.
Speaking during a courtesy visit by CORAN members to the NUPRC, where both parties discussed ways to strengthen domestic refining capacity and ensure sustainable crude supply,Dr. 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.”
According to the statement by the CORAN spokesperson, Eche Idoko, the NUPRC boss ssured 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.
She advised refinery operators to adopt long-term crude supply contracts with producers as a practical approach 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.
The statement stated that 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.
It recalled that some 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.
The statement added that the meeting was part of the ongoing engagements between regulators and private refinery operators aimed at unlocking the full potential of Nigeria’s downstream petroleum sector.