The Managing Director, OTL Africa Downstream Development Ltd., Mrs. Joyce Akabogu, says competition regulation, crude availability and feedstock distribution remain key challenges facing the downstream sector of the Nigerian oil industry.
Speaking at a media interactive session in Lagos, ahead of the 20th OTL Africa Downstream Energy Week, Mrs. Akabogu said that the challenges went beyond disagreements among individual operators to broader concerns around competition regulation, policy certainty and feedstock availability.
Akabogu stressed the importance of reliable crude supply and efficient distribution to the growth of the downstream market.
In his speech, the Chairman, OTL Africa Downstream Advisory Board, Mr. Tunji Oyebanji, raised concerns about crude availability after existing supply commitments and domestic refinery requirements had been met.
Oyebanji said that assessing crude availability required distinguishing total production from volumes already committed to buyers and other obligations.
He added that domestic refineries’ requirements must also be considered when determining volumes available to individual operators.
Oyebanji warned that uncertainty over crude supply and pricing could discourage investment and revive supply challenges associated with regulated petroleum prices.
GIK/APA