This Day (Lagos)

Nigeria: Chevron Restores 20,000 BDP Crude Output

Ejiofor Alike

3 October 2008


Lagos — United States oil major Chevron Corporation has said it has restored normal production to its 20,000 barrels per day (bpd) Pennington facility, which was destroyed over a year ago after an attack by militants in the Niger Delta.

Chevron Manager in charge of Policy, Govern-ment and Public Affairs, Mr. Femi Odumagbo, disclosed this to THISDAY yesterday.

According to him, crude oil production in the facility has been restored fully to normal after over one year of closure.

Production of Pennington crude, which is highly valued by foreign refiners for its low sulphur content, was disrupted in May 2007 following an attack by militants.

The company, however, started what it called "gradual re-entry programme" into the damaged facility in July this year.

Chevron's daily crude oil output averaged 353,000 barrels in 2007, but in July this year, it started producing crude from its Agbami deep water field at an initial rate of 100,000 barrels a day.

Production from the field is projected to hit its peak of 250,000 barrels of crude per day by 2009.

Meanwhile, the company's Warri Branch of the Nigerian Union of Petroleum and Natural Gas (NUPENG) workers yesterday said it had extended the deadline for its ongoing strike in a bid to press home the demands of its members.

THISDAY gathered that the deadline was supposed to expire on Wednesday but because of the Eid-el-Fitri festival and the 48th Independence anniversary, which resulted in three days public holiday, the deadline was shifted to next Wednesday.

It was also gathered that the company is yet to meet the demands of the workers for improved working conditions.

NUPENG has been holding talks with the company to resolve the impending crisis.

The aggrieved workers, who are employees of Chevron contractors, are demanding pension and other fringe benefits.

Although efforts to speak with the Warri Branch Chairman of NUPENG, Mr. Williams Akporeha, was unsuccessful, Odumagbo, however, told THISDAY that the workers involved in the dispute were workers of contractors supplying people to the company.

"They are making progress in the negotiation. They are workers of contractors supplying people to us but they are making progress in the talks," Odumagbo said.

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