Connect with us

Business

Nigeria begs Spain to buy more oil to boost foreign reserve

Published

on

Nigeria begs Spain to buy more oil to boost foreign reserve

In a desperate move to find solution to its economic recession and improve on its drained foreign reserve, Nigeria has made overtures to Spain to buy more of its crude oil.

If the request is granted, it will also strengthen their bilateral trade relationship.
The balance of trade between the two stands at 5:2 in favour of the European country.

Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Dr. Maikanti Kachalla Baru, confirming this said the Corporation had also started working out the possibilities of working closely with the Spanish National Oil Company, REPSOL to improve the technical capacities of Nigerian refineries.

It is gathered that the current scarcity of the dollar may hit the second turn around maintenance of the three major refineries, hence the need to approach Spain for a way out.

The reduction of crude oil export to Asia, since last quarter, is said to be having some negative impact on foreign reserve of Nigeria.

“There is an urgent need to look for alternative buyers aside from the United States and Asia,” said an official.

Part of the deal is that REPSOL will be refining about 900,000 barrels of crude oil per day for Nigeria, to be channeled directly to NNPC depots along with its locally refined products.

The Spanish Ambassador to Nigeria, Mr. Alfonso Barnuevo, speaking through an aide, said the interests of oil firms in his country are more liquefied petroleum gas, also known as cooking gas, than other products.

But he promised that his country would look into the request by Nigeria with intention of finding solution to its present economic down turn.

It is said that Spain, which is supposed to be Nigeria’s second client in the area of oil and gas, had recently reduced its purchase from 4.6 billion Euros worth to 3.6 billion.

By Emma Eke

Join the conversation

Opinions

Investigations