Things Are About To Get Bad For Nigeria’s Crude Oil Production
So, you may recall that drop in oil production between April and June led to the decline in GDP numbers. Now, things may even get worse because one of the international producers operating out of Nigeria, is having its production threatened.
So, what is playing out is that formers workers of the company are in a labour dispute and have gone block the production facility.
And now, Mobil is saying that “disruptions to these operations have the potential to significantly impact revenues.”
The company made the announcement in a statement after a six-week blockade by former workers at the oil facilities.
To put this into perspective, Mobil Producing Nigeria, the ExxonMobil subsidiary that released the statement, produces over 550,000 barrels per day of crude oil, condensates and natural gas liquids, according to the company website.
Nigeria’s average production in the second quarter of 2018 was 1.8 million barrels per day, according to National Bureau of Statistics, NBS.
The blockades were described in ExxonMobil’s statement as the “playing of loud music, defacing of company facilities and intimidation of personnel.”
The “continued denial of access to production facilities could impact the company’s ability to safely continue production operations,” ExxonMobil said.
The protest which began on 17 July was over the sacking of 860 Nigerian workers most of whom had worked with the company for over 22 years without regards for the rule of law.
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