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Business News of Monday, 13 November 2023


Revenue boost for Tinubu’s govt as NNPC restores oil production of 275,000bpd

FG revenue gets a big boost FG revenue gets a big boost

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.

This was disclosed in a communiqué issued signed by TotalEnergies Matthieu Bouyer, MD/CEO; Festus Osifo, PENGASSAN president, and Williams Akporegha, NUPENG president.

Impact of the union strike suspension

It expected that the deal will further help boost Nigeria's oil production and bring in more 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. Although Nigeria’s production has been improving this year, crude theft, illegal refining and lack of investment in the sector have hobbled output, which has remained below its OPEC quota of 1.74 million bpd.

Also, the unions decided to suspend strikes will help ease the ears 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 cargoes of crude oil in December to be used in test runs.

Why Dangote refinery is delaying production as five modular refineries take off

Earlier, 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.

This is the second time the refinery has missed its production date in 2023 since it was commissioned on May 22, 2023.