The Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer, Bashir Ojulari, has lamented the crude and gas production losses resulting from the three-day strike carried out by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
In a letter to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and Nigerian Upstream Petroleum Regulatory Commission, Ojulari explained that the suspended strike resulted in 16% oil production, 30% marketed gas losses, and a 20% power supply shortfall.
The national oil company also sent a letter titled ‘Impact Assessment of Ongoing Industrial Action,’ dated September 29, 2025.
The industrial action, caused by a schism between the union and the Dangote Refinery, forced the closure of major oil terminals, gas plants, and power plants, resulting in the deferment of 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas per day, cutting off vital income streams from the country’s two largest revenue sources.
This came as the union’s leadership declared the suspension of its statewide strike against Dangote Petroleum Refinery in response to the federal government’s intervention, while cautioning that the truce was only temporary and may be lifted if the outstanding issues are not resolved.
Chronicle NG reports that both PENGASSAN and the management of the 650,000 refinery have been at loggerheads.
PENGASSAN accused the Dangote Refinery of mass transfers and sackings of union members, as well as replacing certain Nigerians with foreign nationals, which the business continually disputed.
The refinery’s management claimed that the workforce reorganization was due to operational needs and not related to union activities.
However, the standoff escalated when the union halted gas and crude oil supplies to the refinery, raising concerns about potential disruptions to the nation’s energy supply and economic stability.
The Federal Government intervened to address worries about the dispute’s impact, citing the danger of “adverse effects on the economy and energy security,” and organized high-level negotiations to resolve the standoff.
The NNPCL GCEO detailed the financial losses in a letter acquired by our correspondent on Wednesday, stating that industrial action caused major production deferments.
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Ojulari revealed that, within the first 24 hours of the strike, on September 29, 2025, production deferments stood at 283,000 barrels of oil per day, 1.7 billion standard cubic feet of gas per day, and more than 1,200 megawatts of power generation.
According to him, this equates to around 16% of national oil production, 30% of marketable gas, and 20% of electricity supply, with the effects projected to worsen if the situation persists.
“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 percent of national oil output, 30 percent of marketed gas, and 20 percent of electricity generation. Should the situation continue, the impacts are expected to intensify, posing a material threat to national energy security,” the GCEO noted.
The gas sector also suffered significant losses during the strike, with around 1.7 billion standard cubic feet per day knocked down. According to industry data, this volume corresponds to around 1.7 million Mcf of gas each day, which, when translated at 1.037 MMBtu per Mcf, equals approximately 1.76 million MMBtu each day.
He went on to say that at least five scheduled key maintenance activities have been impacted, with the potential for significant delays in the future. These include the USAN turnaround maintenance, AKPO GT-3 pigging, H₂ well tests, annual compressor maintenance, and the SEPNU EAP IGE.
Ojulari also reported that about 100,000 barrels per day of crude oil and 1.341 billion standard cubic feet of monetized gas from Joint Venture and Production Sharing Contract assets, which were scheduled to be restored this week, had been postponed.
Ojulari stated that, while a small number of non-unionized employees were still assisting crude shipments, activities remained severely hampered.
He cautioned that ongoing and scheduled lifting operations across the terminals were expected to face additional financial setbacks in the coming months, increasing the likelihood of demurrage claims from international customers.
At the Brass Terminal, for example, the loading of an NNPC shipment that was nearing completion was halted because documentation could not be finalized owing to the strike. The delay, he claimed, had already resulted in demurrage expenses.
The NNPCL CEO emphasized that the financial toll was rapidly increasing, with significant revenue losses expected at current delay levels.
According to him, missing crude lifts and disturbed gas sales were putting the company’s cash flow under “immediate and compounding pressure.”
“It is our considered view that the current industrial action has impacts that extend beyond the Dangote Refinery. The disruptions pose systemic risks to energy supply, personnel and asset security, and the wider economy. A sustainable solution is required to prevent such an extensive interruption of the overall energy security infrastructure and to safeguard national energy security and stability,” he concluded.
Meanwhile, the PENGASSAN leadership stated that the decision to temporarily postpone the statewide strike was made out of respect for federal institutions and government mediation efforts, and that it was not a vote of confidence in Dangote.
