Revenue Boost for Tinubu’s Government As NNPC Restores Oil Production of 275,000bpd
- The Nigerian National Petroleum Company Ltd (NNPCL) has restored production to 275,000 barrels of oil per day (bpd)
- A lingering rift between oil operators TotalEnergies and its worker unions had stopped production for weeks
- The news of the settlement will come as a big boost for the federal government, which is trying to earn more oil dollars
Dave Ibemere has over a decade of experience covering business and the economy.
The Nigerian National Petroleum Company Limited (NNPCL) has announced the restoration of 275,000 barrels of oil per day production.
This follows a peace deal brokered by NNPCL 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) to suspend ongoing industrial action.
Source: Twitter
This was disclosed in a communiqué signed by TotalEnergies MD/CEO, Matthieu Bouyer; Festus Osifo, PENGASSAN president; and Williams Akporegha, NUPENG president.
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Impact of the union's strike suspension
The deal is expected to help further boost Nigeria's oil production and increase revenues.
Nigeria's oil production stood at 1.49 million barrels per day in October, according to data from the Nigerian Upstream Petroleum Regulatory Commission(NUPRC).
It is still, however, below the 2023 budget target of 1.69 million bpd.
While Nigeria has seen improved production this year, output has been hampered by crude theft, illegal refining, and a lack of investment in the sector.
As a result, production has remained below its OPEC quota of 1.74 million bpd.
Also, the union's decision to suspend strikes will help ease the fears that NNPCL may struggle to supply crude to the 650,000 bpd Dangote refinery, which has missed several targets to start production.
The NNPC is expected to supply the Dangote refinery with up to six crude oil cargoes in December for test runs.
Why Dangote refinery is delaying production as five modular refineries take off
Earlier, Legit.ng reported that the failure to supply crude oil to domestic refineries, including the Dangote Refinery, delayed production.
The development comes as the Dangote refinery failed to meet its October production deadline, the the second time the refinery miss its target since it was commissioned on May 22, 2023.
Source: Legit.ng
