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Nigeria’s crude oil output to hit 1.8 mbpd by Dec, says NNPC as Mobil staff end strike

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By Samuel Bankole

The Nigerian National Petroleum Company Limited (NNPC) said on Thursday that the country’s crude oil production output may hit 1.8 million barrels per day before the end of this year.

According to the state-owned oil firm, production peaked at 1.67 million barrels per day in March this year, recovering from an all-time low of sub-one million barrels of crude oil production per day in July 2022.

A statement by the energy company said, “An improved production output implies significant economic benefits for the country and all stakeholders.”

The statement signed by the company’s Chief Corporate Communications Officer, Garba Deen Muhammad, said the recovery in crude oil production is expected to be aided by the call-off of strike action by the senior staff of Mobil Producing Nigeria Unlimited.

According to him, the industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENCASSAN) was called off after the intervention of the Group Chief Executive of the state-owned energy firm, the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari.

The industrial action across all Mobil and Esso exploration and production facilities, which commenced on April 13, 2023, effectively constraining 300,000 barrels of oil production daily (BOPD) as well as export activities, forced Mobil to declare a force majeure across all their locations.

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With NNPC Ltd. asserting its industry leadership and the current sustained efforts at curbing production losses, Nigeria’s crude oil production output is poised to hit 1.8 million barrels per day before the end of the year.

“The Group Chief Executive Officer, Mallam Mele Kyari, successfully led mediation efforts between the Union and Mobil through a series of meetings and engagements for an immediate and unconditional return to work and resumption of production and export activities across all Mobil locations in Nigeria.

“At a tripartite meeting in Abuja on Wednesday, April 26, 2023, between the leadership of Mobil, PENCASSAN led by the National President of the Union, Comrade Festus Osifo, and NNPC Ltd., at the instance of the GCEO, the Union’s grievances were holistically addressed and firm commitments were put in place to avoid a repeat of the regrettable situation.

“Industrial relations broke down at Mobil as a result of the 2023 Collective Bargaining Agreement stalemate and proposed changes to the rota schedule of operations staff.”

“During the mediation, the NNPC Ltd. leadership prevailed on both Mobil and the Union to shift grounds and find a common position in the interest of all parties and the Federation.

“A pay adjustment acceptable to the union and within the threshold of Mobil was collectively agreed upon and signed off, while both parties have also agreed to put together a working team that will have a 5-month timeline to review the proposals for a possible change in rota schedule for operations staff and parameters for implementation.

Further, the GCEO implored the union to always explore alternative means of dispute resolution rather than resorting to strike actions with far-reaching implications beyond the operations of the company involved in the dispute.

“The industrial action commenced in the aftermath of the recovery of national production from an all-time low of sub-one million barrels of crude oil production per day in July 2022 to over 1.67 million barrels per day in March 2023.”

(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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