In a recent development, Nigeria’s state oil firm NNPC Ltd announced on Sunday that it successfully restored 275,000 barrels per day (bpd) of oil production at its joint venture unit with Total Energies after resolving an industrial action by workers.
According to NNPC’s statement, “The unions have agreed to suspend ongoing industrial action leading to the immediate restoration of 275,000 barrels of oil per day production.” The agreement 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.
NNPC did not disclose the specifics of the dispute or the workers’ demands, which had not been previously announced.
As of October, Nigeria’s oil production was reported at 1.49 million barrels per day, below the 2023 budget target of 1.69 million bpd, according to data from the petroleum regulator. Despite improvements in production this year, challenges such as crude theft, illegal refining, and insufficient investment in the sector have hindered output, which remains below its OPEC quota of 1.74 million bpd.
Concerns have arisen regarding NNPC’s ability to supply crude to the 650,000 bpd Dangote Refinery, which has experienced delays in starting production. NNPC Ltd, however, aims to address this issue by supplying the Dangote refinery with up to six cargoes of crude oil in December for test runs, according to industry sources with knowledge of the matter.