The Nigerian National Petroleum Company Limited (NNPCL) has reported a significant loss of 16% in the nation’s oil production due to a three-day strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the company’s group chief executive officer, Bashir Ojulari, stated.
The strike also substantially reduced gas output and power supply, dramatically affecting Nigeria’s energy sector and economic stability.
In a formal letter addressed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission, dated September 29, 2025, Ojulari detailed the adverse impacts of the industrial action.
According to him, the strike — which stemmed from deepening conflicts between PENGASSAN and Dangote Refinery management— caused a deferment of 283,000 barrels of crude oil per day and a loss of 1.7 billion standard cubic feet of gas daily.
“As of 29 September 2025 (within the first 24 hours of the strike), production deferments stood at approximately 283 kbpd of oil, 1.7 bscfd of gas, and over 1,200 MW of power generation impact.
“This equates to around 16 per cent of national oil output, 30 per cent of marketed gas, and 20 per cent of electricity generation. Should the situation continue, the impacts are expected to intensify, posing a material threat to national energy security,” the GCEO noted.
This disruption corresponded to about 16 per cent of Nigeria’s crude oil production and 30 per cent of marketable gas, alongside a 20 per cent shortfall in power generation.
He said the closure of key oil terminals, gas plants, and power facilities was a direct consequence of the union’s interruption of crude and gas supplies, escalating tensions that threatened national energy security.
Despite the union’s announcement of a temporary suspension of the statewide strike following intervention by the federal government, PENGASSAN warned that the pause was fragile and conditional on tangible resolutions to outstanding concerns.
Ojulari’s letter, seen by Bloomnerg, outlined the immediate production losses and highlighted the longer-term fallout.
Ojulari said maintenance operations crucial to sustaining oil and gas infrastructure—including the USAN turnaround, AKPO GT-3 pigging, hydrogen well testing, annual compressor servicing, and SEPNU EAP IGE procedures—have been delayed, potentially exacerbating production challenges.
Also, deferred crude lifting and monetised gas volumes from Joint Venture and Production Sharing Contract assets amounting to 100,000 barrels per day and 1.341 billion standard cubic feet of gas were postponed, intensifying financial strain.
While some non-union personnel continued crude shipment processes, operations remained constrained mainly by the strike’s disruptions.
Ongoing and scheduled lifting activities at various terminals are vulnerable to further delays, posing a risk of increased demurrage claims from international buyers.
For example, loading at the Brass Terminal was stalled due to missing documentation, directly linked to the workers’ industrial action, resulting in additional demurrage costs.
The NNPCL CEO stressed that the fiscal impact of the strike is mounting rapidly, with revenue streams from crude exports and gas sales under severe pressure.
The situation, he explained, has systemic dangers that extend beyond the refinery dispute, threatening personnel safety, asset security, and the broader Nigerian economy.
Ojulari urged for urgent and sustainable resolution measures to protect Nigeria’s energy infrastructure and ensure the country’s energy security and economic stability are not compromised further.
While the federal government continues mediation efforts to resolve the standoff, PENGASSAN leadership reiterated that their temporary strike suspension was a gesture of respect for governmental intervention rather than an endorsement of Dangote Refinery’s actions. The union warned that should their demands remain unmet, the strike could resume, prolonging the uncertainty over one of Nigeria’s most critical energy assets.
