(Ecofin Agency) - The Nigerian National Petroleum Corporation (NNPC) has announced the commencement of talks with Niger Republic to supply crude oil to Kaduna Refining and Petrochemical Company (KRPC). This is coming after the corporation announced plans at the beginning of this month to purchase crude oil from the republic and also share geological data in order to further increase the current exploratory activities in the Chad Basin and Benue Trough.

According to the Group Managing Director (GMD) of the NNPC, Maikanti Baru (photo), the Federal Government has started talks with Niger Republic for the supply crude oil to KPRC to increase its production capacity which currently stands at 60% and amends the challenges posed by the militants.

“At the moment, Kaduna is the only crude oil refinery in the nation that supplies petroleum products to the north. The operation has been epileptic. The capacity utilization now is about 60 per cent but we are working hard to restore this,” he told the Guardian.

Baru added that the corporation is also “planning to build pipeline over thousands of kilometers from Agadir in Niger Republic to supply Kaduna refinery with crude oil. We have started discussion with the Nigerien minister of petroleum and some Chinese companies operating in the area. Kaduna is very important to oil and gas as it houses KRPC, NNPC zonal office and the new College of Petroleum Resources, which would begin operation on January 1, 2017.”

Anita Fatunji