April 17, 2024
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OIL & GAS

Nigeria Restores its 275,000 bpd Oil Production

The Nigerian National Petroleum Company (NNPC) Ltd, the state-owned oil firm said on Sunday it had restored 275,000 barrels per day (bpd) of oil production at its joint venture unit with Total Energies (TTEF.PA) after negotiating an end to industrial action by workers.

This is contained in a statement signed by Olufemi O. Soneye, the Chief Corporate Communications Officer of the firm, posted on its X handle.

It noted that an agreement to suspend the action had been signed between TotalEnergies, the Petroleum and Natural Gas Senior Staff Association and the Nigerian Union of Petroleum and Natural Gas Workers, which represent senior and junior workers in the industry.

The statement partly read “Following a peace deal brokered on Sunday, November 12, 2023 by the Nigerian National Petroleum Company Limited (NNPC Ltd.) between the Management of TotalEnergies, operator of the NNPC / TotalEnergies JV, the Petroleum and Natural Gas Senior Staff Association, (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), the unions have agreed to suspend ongoing industrial action leading to immediate restoration of 275, 000 barrels of oil per day production.

“In a communiqué issued at the end of a marathon negotiation session chaired by Oritsemeyiwa Eyesan, Executive Vice President, Upstream, NNPC Ltd., all parties committed to resolving all the issues within an agreed framework.

“The communiqué was signed by TotalEnergies MD/CEO Matthieu Bouyer, PENGASSAN President, Comrade Festus Osifo, and NUPENG President, Comrade Williams Akporegha. It was witnessed by NNPC Ltd.’s, EVP Upstream Oritsemeyiwa Eyesan and Chief Upstream Investment Officer, NNPC Upstream Investment Management Services, Bala Wunti. Also in attendance was Victor Bandele, Deputy Managing Director, TotalEnergies.

“The unions have agreed to suspend ongoing industrial action leading to immediate restoration of 275,000 barrels of oil per day production,” NNPC said.

NNPC did not disclose the nature of the dispute or the workers’ demands, which had not been previously announced.

Nigeria’s oil production stood at 1.49 million barrels per day in October, according to data from the petroleum regulator, still below the 2023 budget target of 1.69 million bpd.

Although production has been improving this year in Africa’s biggest oil producer, crude theft, illegal refining and lack of investment in the sector have hobbled output, which has remained below its OPEC quota of 1.74 million bpd, according to Reuters.

That has led to fears that NNPC may struggle to supply crude to the 650,000 bpd Dangote Refinery, which has missed several targets to start production.

NNPC Ltd will supply the Dangote refinery with up to six cargoes of crude oil in December to be used in test runs.

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