Why We’re Having Setbacks in Oil Production in Nigeria – Idi Mukhtar

By ALEX UANGBAOJE, Kaduna

The Managing Director, Kaduna Refining and Petrochemical Company (KRPC), Alhaji Idi Mukhtar, at the weekend blamed the inability of the Nigerian refineries to meet up its production capacity required in the country’s oil demand on pipelines vandalism.

The KRPC boss stated this at the fourth edition of capacity building workshop for Energy Correspondents organised by the company. He however called for the establishment of 20-inch Pipeline to optimism refining of crude to about 80 per cent.

According to him, “of equally strategic importance is the need to lay a new wider (20 inch) pipeline that will serve as a better alternative to the current 16 inch pipeline which is limited by its size and low integrity.

“In fact, if KRPC is to achieve the target of operating at a minimum of 80 per cent throughput, the new pipeline is needed to ensure delivery of sufficient crude oil to meet the target.”

Mukhtar also advocated for framework that would regard the pipeline as ‘’Military Zone’’ in view of its strategic importance. Adding that, “a major challenge facing KRPC is the incessant vandalism on Warri–Kaduna pipeline and in fact it is one of the greatest threats to KRPC’s performance. This line needs to be highly secured to guarantee continuous supply of crude oil to KRPC.”

According to him, the KRPC is working to repostion its self inline with the current Administration’s effort to ensure efficiency and profitability in the oil sector.

He said the company is undertaking major restructuring process for the formation of Autonomous Business Units (ABU) with new Operation and Marketing Model (O&M Model) to address inefficiencies in the refinery.

“In line with the on-going NNPC transformation objectives, the aspiration of KRPC is to move from cost centre to a profit and self-sustaining center with the capability to grow investment, production output and revenue.

“While we have done a great job in the past few years in creating substantial value, considering where we were a couple of years ago and where we are today.

“We also recognize that KRPC is going through difficult times that have made it a herculean task in sustaining steady operations and excellent business performance. Some of these difficulties are within what we could handle as a company, while some are outside our control.

“It is heartwarming to know that the on-going rehabilitation project provides opportunity to address KRPC’s critical areas of need and advances a change action that will reposition the business”. He said.

Speaking on KRPC’s relationship with the host community, the official said the host communities had contributed immensely to the success of the company.

He said that since 2010, the company had distributed on the average 30,000 exercise books quarterly to Primary Schools in the Community and conducted immunization exercises against measles and Cerebro-Spinal Meningitis in all the host community centers.

“In realization of the prevalence of unemployment among youths and the reality that KRPC has limitations in terms of employment, it initiated a Youth Empowerment and Skills Acquisition Programme (tagged: YESAP) in 2008.

“So far, Seven Hundred and Ninety Five youths from the community have been trained and have set up their businesses. We shall embark on a new round of this important training soon.” He said.

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