The Nigerian National Petroleum Company Limited (NNPCL), has lamented the crude and gas production losses associated with the three-day industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) following its face off with Dangote Refinery over industrial matters.
The company’s Group Chief Executive Officer, Bayo Ojulari, in a letter dated 29 September, 2025 forwarded to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerian Upstream Petroleum Regulatory Commission (NUPRC), claimed that the suspended strike led to 16 per cent oil production and 30 per cent marketed gas losses, even as the country suffered a 20 per cent power supply shortfall.
In the letter titled ‘Impact Assessment of ongoing Industrial Action’, which was also sent to the National Security Adviser and the Director-General, Department of State Services (DSS) stated that the industrial action 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.
Giving the breakdown of the losses, Ojulari disclosed that, in the first day of the strike, which was 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
- Advertisement -
He maintained that this translated to around 16 per cent of national oil production, 30 per cent of marketed gas, and 20 per cent of electricity supply.
Ojulari clarified: “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.”
According to him, the gas subsector also recorded heavy losses during the industrial action, with about 1.7 billion standard cubic feet per day loss, translating to roughly 1.7 million Mcf of gas daily or about 1.76 million MMBtu each day.
Ojulari further reported that at least five scheduled critical maintenance activities were affected during the strike, with knock-on effects likely to worsen deferments, including the USAN turnaround maintenance, AKPO GT-3 pigging, H2 well tests, annual compressor maintenance and SEPNU EAP IGE.
In addition, he claimed that about 100,000 barrels per day of crude oil and 1.341 billion standard cubic feet of monetised gas across Joint Venture and Production Sharing Contract assets, which were due to be restored had been delayed.
The GCEO 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, if the industrial action was not quickly resolved.
