By Peace Deal Reached to End Oil Unions’ Industrial Action
IBADAN, Nigeria—Nigeria’s national oil company recently announced that it has successfully settled an industrial dispute between the country’s two main oil unions and TotalEnergies. As a result, oil production in the country has been restored to a level of 275,000 barrels per day.
A spokesperson for the Nigerian National Petroleum Company (NNPC) revealed that the company played a pivotal role in brokering a peace deal between the management of TotalEnergies, the Petroleum and Natural Gas Senior Staff Association (PENGASSAN), and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG). This agreement led to the immediate suspension of the ongoing industrial action, subsequently allowing for the restoration of 275,000 barrels of oil production per day.
In a statement, Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, confirmed, “The unions have agreed to suspend ongoing industrial action leading to the immediate restoration of 275,000 barrels of oil per day production.”
The negotiations resulted in a signed communique by TotalEnergies’ Managing Director and CEO, Matthieu Bouyer, PENGASSAN’s President, Festus Osifo, and NUPENG’s President, Williams Akporeha. Soneye emphasized that all parties involved have committed to resolving all outstanding issues within an agreed framework.
While the NNPC did not provide specific details regarding the nature or cause of the industrial dispute between the two oil unions and TotalEnergies, it is worth noting that TotalEnergies EP Nigeria Ltd (TEPNG) holds a 40% interest in the NNPC/TEPNG joint venture which is responsible for oil and natural gas production in several onshore and shallow water concessions.
According to data from the Nigeria Upstream Petroleum Regulatory Commission, Nigeria’s oil production in the previous month stood at 1.49 million barrels per day. This falls below the country’s OPEC oil production quota of 1.74 million barrels per day, primarily due to significant oil theft and illegal bunkering. However, with the restoration of 275,000 barrels per day, there is hope for a gradual improvement in production levels.
By Obafemi Oredein; Dow Jones Newswires
Comments