The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that the recent three-day strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) cost the nation about 16 percent of its oil production. Group Chief Executive Officer, Bashir Ojulari, revealed this in a formal letter to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) dated September 29, 2025.
Ojulari explained that the industrial action, sparked by disputes between PENGASSAN and Dangote Refinery management, resulted in the deferment of around 283,000 barrels of crude per day, 1.7 billion standard cubic feet of gas, and over 1,200 megawatts of power. This, he noted, translates into 30 percent of marketable gas and 20 percent of national electricity supply.
The disruptions, which forced the closure of several oil terminals, gas plants, and power facilities, posed what Ojulari described as “a material threat to national energy security.” He added that ongoing maintenance activities—such as the USAN turnaround, AKPO GT-3 pigging, and compressor servicing—were delayed, increasing the risk of prolonged production setbacks.
NNPCL further warned of financial strain from deferred crude lifting and gas monetisation, amounting to 100,000 barrels per day and 1.34 billion standard cubic feet of gas from Joint Venture and Production Sharing Contract assets. Loading operations at some terminals, including Brass, were also stalled, raising the prospect of costly demurrage claims from international buyers.
Although PENGASSAN has announced a temporary suspension of the strike following federal government intervention, the union stressed that the move was conditional and could be reversed if outstanding grievances remain unresolved.
Ojulari cautioned that the fiscal and systemic risks posed by the industrial action extend beyond the refinery dispute, warning that personnel safety, asset security, and the wider economy are at stake. He urged for urgent and sustainable solutions to protect Nigeria’s energy infrastructure and prevent further disruption.
