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NNPCL Confirms PENGASSAN Strike Cripples Oil and Gas Output, Threatens National Energy Security

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NNPCL Confirms PENGASSAN Strike Cripples Oil and Gas Output, Threatens National Energy Security

The Nigerian National Petroleum Company Limited (NNPCL) has confirmed that the brief nationwide strike embarked upon by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) severely disrupted the country’s oil and gas production.

PulseNets learnt that crude oil output fell by about 283,000 barrels per day, representing nearly 16 percent of Nigeria’s total production, while gas production equally dropped by 1.7 billion standard cubic feet per day. The disruption also knocked out more than 1,200 megawatts of power generation, a development that experts say puts national energy supply at grave risk.

The Group Chief Executive Officer of NNPCL, Bayo Ojulari, in a letter dated September 29, 2025, obtained by PulseNets, revealed that the industrial action had triggered “significant production deferments and projected revenue losses from missed crude liftings and reduced gas sales.”

According to him,

“The immediate impact shows massive revenue losses at the prevailing deferment levels. These are driven by missed crude liftings and curtailed gas sales. The cashflow strain is not only instant but is also worsening with time.”

Ojulari further told PulseNets that the company had intensified its engagements with operating partners and relevant regulators, while activating Business Continuity Plans. He explained that in some instances, non-union staff had to take over operations to cushion the effect of the work stoppage.

He stressed that the strike’s effects were not limited to facilities like the Dangote Refinery but extended into broader systemic risks across the nation’s energy architecture.

In his words,

“The disruptions affect more than just production numbers. They raise systemic risks for energy supply, personnel safety, asset security and the stability of the wider economy. Should the strike linger, it could pose a material threat to Nigeria’s energy security.”

Within the first 24 hours of the strike, PulseNets learnt that deferments had already reached approximately 283,000 barrels of oil per day, 1.7 billion standard cubic feet of gas, and an impact of over 1,200 megawatts on power generation.

Also Read: Court Stops PENGASSAN, NNPCL, Others from Cutting Gas Supply to Dangote Refinery

Industry watchers told PulseNets that if prolonged, the PENGASSAN strike could trigger deeper losses, cripple electricity supply and worsen Nigeria’s already fragile energy sector outlook.