The Dangote Refinery Strike Cost Nigeria 600,000 Barrels Of Oil Output

A three-day national strike prompted by layoffs at the Dangote refinery has led to production losses of 600,000 barrels, the chief executive of the Nigerian National Petroleum Company has said.

“I think it was unfortunate that the Dangote and PENGASSAN issue led to strike and whenever there is strike and critical staff manning critical facilities are not available and optimum production is almost impossible.

In this particular case, we actually lost significant production of over 200,000 bpd that was deferred,” Bayo Ojulari told media.

The main Nigerian oil union launched a nationwide strike last month after the Dangote refinery fired as many as 800 workers.

The strike lasted for three days, threatening to reduce fuel supply in the country relying on the new processing facility and in several neighboring countries, which import fuels from Dangote.

The Nigerian oil workers’ union, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said that the Dangote refinery, owned by Africa’s richest man Aliko Dangote, has fired the workers for unionizing.

The Dangote management, for its part, said that the dismissals were part of staff restructuring and those dismissed engaged in “acts of sabotage”.

The strike came at a time when Nigeria’s oil industry is staging a recovery, with oil production on the rise and investments climbing. Production as of September—before the strike—averaged between 1.7 million barrels daily and 1.83 million barrels daily, with active rigs rising from 31 at the start of the year to 50 by July, according to a report from the oil ministry.

According to NNPC’s Ojulari, the September average was 1.68 million barrels, which was an increase from August. In natural gas, Nigeria produced 7 billion cubic feet daily last month, the top executive also told media, adding that by the end of the year, oil production should rebound to 1.8 million barrels daily.

Source: oilprice.com