NNPC projects heavy revenue losses after PENGASSAN strike caused major oil and gas production deferments across Nigeria.
The Nigerian National Petroleum Company (NNPC) Limited has projected significant revenue losses following the suspended strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which disrupted production, liftings, and gas sales.
In a letter dated September 29, 2025, addressed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Bayo Ojulari, group chief executive officer (GCEO) of NNPC, disclosed that the strike resulted in a 16 percent loss in oil production.
“Significant revenue losses are projected at current deferment levels, driven by missed liftings and gas sales. Cashflow pressures are immediate and compounding,” he said.
He noted that “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.”
Ojulari stressed that the impacts of the industrial action “extend beyond the Dangote Refinery,” warning that the disruptions pose systemic risks to energy supply, personnel and asset security, and the wider economy.
According to him, within the first 24 hours of the strike, production deferments “stood at approximately 283 kbopd of oil, 1.7 bscfd of gas, and over 1,200 MW of power generation impaction.”
“This equates to around 16% of national oil output, 30% of marketed gas, and 20% of electricity generation,” he said.
Ojulari also revealed that five critical maintenance activities were stalled during the strike. “Knock-on effects will cause further deferments in subsequent periods. These include USAN TAM, AKPO GT-3 pigging, H2 Well Tests, Annual compressor maintenance, and SEPNU EAP IGE,” he stated.
He added that critical-path projects suffered delays, impacting timelines for production growth. Restoration of approximately 100,000 barrels per day of crude oil and 1.34 billion standard cubic feet of monetised gas across joint venture and production sharing contract assets, originally scheduled for this week, had been postponed.
Although some non-unionised staff managed limited crude export operations, Ojulari said overall activities were significantly constrained. He warned that “ongoing and planned lifting operations across the terminals could face additional financial setbacks in the coming months,” with heightened risks of demurrage claims from international buyers.
He cited the Brass terminal as an example, where the loading of an NNPC cargo stalled due to incomplete documentation during the strike, already incurring demurrage costs.
Ojulari stressed that “the financial impact is escalating quickly, with significant revenue losses projected under current deferment levels.”
PENGASSAN suspended its nationwide
strike on October 1 after federal government intervention. The strike was launched against the Dangote refinery over the dismissal of Nigerian workers. The Dangote Group eventually agreed to redeploy the workers dismissed by its subsidiary.