Nigeria’s state oil firm, NNPC Ltd, has announced the restoration of 275,000 barrels per day (bpd) of oil production at its joint venture unit with Total Energies. This comes after the company successfully resolved an industrial dispute with its workers. The agreement to suspend the ongoing industrial action was signed between TotalEnergies, the Petroleum and Natural Gas Senior Staff Association, and the Nigerian Union of Petroleum and Natural Gas Workers, representing both senior and junior workers in the industry.
The unions have agreed to suspend ongoing industrial action leading to immediate restoration of 275,000 barrels of oil per day production, stated NNPC. However, the nature of the dispute or the workers’ demands were not disclosed in the statement.
Nigeria, Africa’s largest oil producer, has been grappling with challenges hampering its oil production, including crude theft, illegal refining, and a lack of investment in the sector. As a result, the country’s oil production in October stood at 1.49 million bpd, falling short of the targeted 1.69 million bpd outlined in the 2023 budget.
While there has been some improvement in production this year, the country’s output still remains below its OPEC quota of 1.74 million bpd. This has raised concerns about NNPC’s ability to supply crude to the Dangote Refinery, which has experienced delays in starting production. The refinery, with a capacity of 650,000 bpd, has scheduled test runs for December.
In a bid to support the Dangote Refinery, NNPC Ltd plans to supply the facility with up to six cargoes of crude oil next month, according to industry sources. This move is aimed at facilitating the refinery’s testing phase.
The restoration of oil production at NNPC’s joint venture unit is a positive development for Nigeria’s oil industry. It is expected to contribute to the country’s ongoing efforts to meet its oil production targets and boost its economy.
