The Nigerian National Petroleum Company Limited (NNPC Ltd) has said that the country’s oil and gas production slumped during the brief nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which ended on Wednesday after government-brokered talks with Dangote Refinery.
The Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, in a letter to regulators dated September 29, said the strike, which began on September 28 over the dismissal of some refinery workers, triggered sharp energy disruptions across the country.
Ojulari explained that the industrial action caused production deferments of about 283,000 barrels of oil per day, 1.7 billion standard cubic feet of gas and over 1,200 megawatts of power generation in just 24 hours.
He said the figures represent 16 per cent of Nigeria’s daily oil output, 30 per cent of marketed gas and 20 per cent of electricity supply.
Ojulari warned that the impacts extended beyond the Dangote Refinery and posed systemic risks to energy supply, personnel and asset security, and the wider economy.
According to him, “Significant revenue losses are projected at current deferment levels, driven by missed liftings and gas sales. Cashflow pressures are immediate and compounding.
“NNPC continued engagement with operating partners and key stakeholders to enhance security and emergency protocols, activation of BCP with non-union staff taking over operations, where practicable.
“Within the first 24 hours of the strike, the NNPC GCEO said production deferments stood at approximately 283 kbopd 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.”
Key assets affected included Shell’s Bonga floating production unit and the Oben gas plant, while the restart of Nigeria LNG’s Trains 5 and 6 was delayed. Cargo loadings at the Dangote Refinery, Akpo, Brass and Egina export terminals were also disrupted, with demurrage risks mounting. At least five critical maintenance and project schedules also slipped.
NNPC said it activated business continuity plans with non-union staff sustaining operations where possible, but stressed that cashflow pressures are immediate and compounding from the disruption.
