The Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer, Bashir Ojulari, has highlighted severe losses in crude oil and gas production following a three-day strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
According to PUNCH, In a letter addressed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission, Ojulari revealed that the strike caused a 16% reduction in oil production and a 30% drop in marketed gas. The country also experienced a 20% shortfall in power supply.
The 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 of the Department of State Services.
Strike Disrupts Operations at Key Terminals and Facilities
The industrial action, triggered by tensions between the union and Dangote Refinery, led to the shutdown of major oil terminals, gas plants, and power facilities. This disruption postponed 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas daily, significantly affecting Nigeria’s top revenue streams.
Following Federal Government intervention, PENGASSAN temporarily suspended the nationwide strike against Dangote Petroleum Refinery. The union, however, warned that the truce is temporary and could resume if unresolved issues persist.
Union-Company Rift Explained
Reports indicate ongoing disputes between PENGASSAN and the management of the 650,000-barrel refinery. PENGASSAN accused Dangote Refinery of mass transfers, terminations of union members, and replacing some Nigerians with foreign workers. The refinery maintained that workforce adjustments were operationally necessary and not union-related.
The disagreement escalated as the union halted crude and gas supplies, raising concerns about national energy supply and economic stability. The Federal Government convened high-level meetings to mediate and prevent further adverse effects on the economy.
Financial and Operational Losses Highlighted
Ojulari disclosed that within the first 24 hours of the strike, production losses amounted to 283,000 barrels of oil, 1.7 billion standard cubic feet of gas, and over 1,200 MW of power generation. These losses equate to 16% of national oil output, 30% of marketed gas, and 20% of electricity supply.
He further noted that five critical maintenance activities were disrupted, including the USAN turnaround maintenance, AKPO GT-3 pigging, H2 well tests, annual compressor maintenance, and SEPNU EAP IGE.
Additionally, the resumption of 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 has been delayed. While a few non-unionized staff continued crude exports, overall operations remain severely constrained.
Ongoing and scheduled lifting operations at terminals, such as Brass Terminal, are expected to incur further financial losses, including demurrage costs. Ojulari warned that continued disruptions could pose systemic risks to national energy security and the broader economy.
Union Suspends Strike, But Concerns Remain
PENGASSAN leadership emphasized that the suspension of the strike was a gesture of respect for government intervention, not confidence in Dangote. Osifo, addressing a news conference in Abuja, said, “We are only suspending, not calling off this strike. Any violation of the agreement will trigger an immediate resumption of industrial action.”
He reiterated that the strike centers on workers’ rights to fair pay and freedom of association. Osifo dismissed claims that the industrial action was over union dues, calling such suggestions “laughable,” and stressed that the dispute was about improving welfare and working conditions.
PENGASSAN also rejected suggestions that the strike aimed to disrupt Dangote’s investment, noting that members contribute significantly to Nigeria’s oil and gas sector, which provides over 90% of foreign exchange earnings and funds the Federation Account Allocation Committee.
While acknowledging gaps in the government-mediated communique, Osifo assured that the union will monitor compliance closely and resume the strike if Dangote fails to meet agreed obligations.
