The Nigerian National Petroleum Company, NNPC, Limited, 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 written to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and Nigerian Upstream Petroleum Regulatory Commission, Ojulari explained that the suspended strike led to 16 per cent oil production and 30 per cent marketed gas losses, while the nation suffered a 20 per cent power supply shortfall.
The national oil company’s letter dated 29 September 2025 and titled ‘Impact Assessment of ongoing industrial action,’ was also sent to the National Security Adviser and the Director General, Department of State Services.
The industrial action caused by a rift between the union and the Dangote Refinery forced the shutdown of major oil terminals, gas plants and power facilities, leading to the deferment of 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas daily, choking off vital income streams from the country’s two biggest revenue sources.
This came as the leadership of the union announced the suspension of its nationwide strike against Dangote Petroleum Refinery following the intervention of the Federal Government, even as it cautioned that the truce remained temporary and could be revisited if the pending issues were not addressed.
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Both PENGASSAN and the NNPC management of the 650,000 refineries have been at loggerheads.
The rift stemmed from allegations by PENGASSAN that the Dangote Refinery engaged in mass transfers and sackings of union members, while also replacing some Nigerians with foreign nationals, claims the company consistently denied.
The refinery’s management stated that the workforce reorganization was due to operational requirements and not related to union activities.
The standoff escalated when the union embarked on an industrial action by halting gas and crude oil supplies to the refinery, raising the alarm over potential disruptions to the nation’s energy supply and economic stability.
The Federal Government intervened over concerns about the impact of the dispute, citing the risk of “adverse effects on the economy and energy security,” and convened high-level talks to resolve the impasse.
Detailing the financial losses in the letter obtained, the NNPCL GCEO said industrial action resulted in significant production deferments.
Ojulari disclosed that, within the first 24 hours of the strike, as of 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 translates to around 16 per cent of national oil production, 30 per cent of marketed gas, and 20 per cent of electricity supply, with the impacts expected to intensify if the situation lingers.
“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.
The gas sector also recorded heavy losses during the strike, with about 1.7 billion standard cubic feet per day taken offline. Industry data showed that this volume translates to roughly 1.7 million Mcf of gas daily, which, when converted at 1.037 MMBtu per Mcf, amounts to about 1.76 million MMBtu each day.
He further explained that at least five scheduled critical maintenance activities have been affected, with knock-on effects likely to worsen deferments in subsequent periods. These include the USAN turnaround maintenance, AKPO GT-3 pigging, H2 well tests, annual compressor maintenance and SEPNU EAP IGE.
Ojulari also revealed that about 100,000 barrels per day of crude oil and 1.341 billion standard cubic feet of monetized gas across Joint Venture and Production Sharing Contract assets, which were due to be restored this week, have now been delayed.
Ojulari, NNPC boss noted that while a limited number of non-unionized staff were still facilitating crude exports, operations remained heavily constrained.
He warned that ongoing and scheduled lifting operations across the terminals were likely to suffer further financial setbacks in the coming months, raising the risk of demurrage claims by international buyers.
At the Brass Terminal, for instance, the loading of an NNPCL cargo that was close to completion was stalled after documentation could not be finalized due to the strike. The delay, he said, had already triggered demurrage costs.
The NNPCL boss stressed that the financial toll was mounting rapidly, with significant revenue losses projected at current deferment levels.
According to him, missed crude lifting and disrupted gas sales were placing 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 explained that the decision to temporarily suspend the nationwide strike was taken out of respect for federal institutions and government mediation efforts, stressing that it was not a show of confidence in Dangote.
Osifo said the union was taking the “moral high ground” by bowing to government persuasion despite strong doubts about the sincerity of the Dangote Group.
Speaking at a news conference in Abuja, Osifo stated, “We are only suspending, not calling off this strike. If any part of this agreement is broken, we will not give any warning. We will immediately resume our suspended industrial action.”
He stressed that the industrial action was rooted in the fundamental right of workers to freedom of association, insisting that members joined the union “to secure better welfare and fair pay.”
According to him, PENGASSAN remains unsatisfied with aspects of the communique signed under the supervision of the Ministry of Labour, warning that the union’s patience should not be mistaken for weakness.
PUNCH
