In a process for upgrading an ethane-containing C5- paraffin stream, the paraffin stream is contacted with an oxygen containing gas in the presence of a selective oxidation catalyst under conditions to selectively oxidize at least part of the ethane in the paraffin stream and produce a first product stream comprising ethylene. At least part of the first product stream is then with an oligomerization catalyst under conditions to oligomerize at least part of the ethylene and produce a second product stream comprising gasoline and/or distillate boiling range hydrocarbons. Gasoline and/or distillate boiling range hydrocarbons are then recovered from the second product stream and at least a part of any residual C5- paraffin stream is recycled to the selective oxidation step.