Nigeria’s oil output falls by 16% during PENGASSAN strike – NNPCL

Nigeria’s oil and gas production fell by about 16 percent during the four-day nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the Nigerian National Petroleum Company Limited (NNPC Ltd) has disclosed.

The strike, which began on September 28, 2025, was triggered by the dismissal of workers at the 650,000 barrels-per-day Dangote Refinery.

It was suspended on Wednesday after government-mediated talks with refinery management.

In a letter to regulators, NNPC’s Group Chief Executive Officer, Bayo Ojulari, said the industrial action caused significant disruptions, leading to production deferments and immediate revenue losses.

“Within the first 24 hours, production losses stood at about 283,000 barrels of oil per day, 1.7 billion standard cubic feet of gas, and over 1,200 megawatts of power generation — representing 16% of oil output, 30% of marketed gas, and 20% of national power supply,” Ojulari stated.

He warned that the strike’s impact extended beyond Dangote Refinery, posing systemic risks to energy security, personnel safety, and critical assets.

Facilities affected included Shell’s Bonga floating production unit, the Oben gas plant, and Nigeria LNG’s Train 5 and 6 restart, while midstream networks also suffered disruptions.

Export cargo loadings at Dangote Refinery and terminals such as Akpo, Brass, and Egina were delayed, raising demurrage risks and pushing back at least five major maintenance and project schedules.

Although NNPC activated business continuity plans, deploying non-union staff to sustain operations, the company said the stoppage still resulted in “significant revenue losses.”

On Sunday, PENGASSAN had ordered a nationwide shutdown in protest against what it described as unfair dismissal of Nigerian workers at the refinery. The union’s General Secretary, Lumumba Okugbawa, said the decision followed an emergency NEC meeting.

The Dangote Group, however, dismissed claims of mass layoffs, insisting the refinery’s restructuring only affected a limited number of staff and was intended to safeguard operations.

The strike was suspended after negotiations brokered by the federal government, easing immediate supply concerns.

However, NNPC warned that systemic vulnerabilities remain in the sector despite the resolution.