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 (TTEF.PA) following the resolution of an industrial dispute with workers.
In a statement, NNPC disclosed that an agreement to suspend the industrial action had been signed among TotalEnergies, the Petroleum and Natural Gas Senior Staff Association, and the Nigerian Union of Petroleum and Natural Gas Workers. These unions represent both senior and junior workers in the industry. NNPC stated, “The unions have agreed to suspend ongoing industrial action leading to the immediate restoration of 275,000 barrels of oil per day production.”
NNPC did not provide details regarding the nature of the dispute or the specific demands of the workers, which had not been previously disclosed.
According to data from the petroleum regulator, Nigeria’s oil production was recorded at 1.49 million barrels per day in October, still below the 2023 budget target of 1.69 million bpd. Despite improvements in production throughout the year in Africa’s largest oil-producing nation, challenges such as crude theft, illegal refining, and insufficient investment in the sector have impeded output, consistently remaining below its OPEC quota of 1.74 million bpd.
Concerns have arisen that NNPC might encounter difficulties in supplying crude to the 650,000 bpd Dangote Refinery, which has experienced delays in meeting production targets.
Sources familiar with the matter informed Reuters that NNPC Ltd is set to provide the Dangote refinery with up to six cargoes of crude oil in December for use in test runs.
