The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bashir Ojulari, has raised alarm over significant crude and gas output losses caused by the three-day strike of the Petroleum and Natural Gas Senior Staff Association of Nigeria.

In a letter dated September 29, 2025, and addressed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission, Ojulari disclosed that the strike resulted in a 16 per cent drop in oil production, a 30 per cent fall in marketed gas volumes, and a 20 per cent shortfall in national power supply.

Copies of the letter, titled “Impact Assessment of Ongoing Industrial Action,” were also sent to the National Security Adviser and the Director General of the Department of State Services.

The industrial action, triggered by a dispute between PENGASSAN and the Dangote Refinery, forced the shutdown of key oil terminals, gas plants, and power facilities. This disruption deferred about 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas daily, cutting off crucial revenue streams from Nigeria’s two largest sources of income.

Meanwhile, the union’s leadership announced the suspension of its nationwide strike against Dangote Petroleum Refinery following federal government intervention.

It stressed, however, that the suspension was provisional and warned that the strike could be reactivated if unresolved grievances were not addressed.

Detailing the financial toll in a letter on Wednesday, Ojulari, said the industrial action led to major production deferments, according to The Punch.

According to him, within the first 24 hours of the strike on September 29, 2025, output losses stood at 283,000 barrels of crude oil per day, 1.7 billion standard cubic feet of gas per day, and more than 1,200 megawatts of power generation capacity.

He noted that the losses represented about 16 per cent of national oil output, 30 per cent of marketed gas, and 20 per cent of electricity supply, warning that the impact would deepen if the disruption persisted.

“As of 29 September 2025 (within the first 24 hours of the strike), production deferments stood at approximately 283 kbpd 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. Should the situation continue, the impacts are expected to intensify, posing a material threat to national energy security,” the GCEO stated.

The gas sector was hit particularly hard, with about 1.7 billion standard cubic feet per day taken offline during the strike. Industry data indicates this volume equates to roughly 1.7 million Mcf daily, which, at a conversion rate of 1.037 MMBtu per Mcf, amounts to about 1.76 million MMBtu each day.

He added that at least five critical maintenance programmes have been disrupted, a setback expected to compound production deferments in the coming weeks. The affected activities include the USAN turnaround maintenance, AKPO GT-3 pigging, H2 well tests, annual compressor servicing, and SEPNU EAP IGE.

Ojulari further disclosed that the restoration of about 100,000 barrels per day of crude oil and 1.341 billion standard cubic feet of monetised gas from Joint Venture and Production Sharing Contract assets, initially scheduled for this week, has now been delayed.

Ojulari noted that although a few non-unionised staff continued to support crude export activities, operations remained severely constrained.

He cautioned that ongoing and scheduled lifting operations at several terminals could face further financial setbacks in the coming months, heightening the risk of demurrage claims from international buyers.

As an example, he cited the Brass Terminal, where the loading of an NNPC cargo nearing completion was stalled because documentation could not be finalised during the strike — a delay that has already incurred demurrage charges.

The NNPCL boss stressed that the financial toll was escalating quickly, warning that revenue losses would be substantial if current levels of deferment persist.

According to him, missed crude lifting and disrupted gas sales were placing the company’s cash flow under “immediate and compounding pressure.”

“It is our considered view that the current industrial action has impacts that extend beyond the Dangote Refinery. The disruptions pose systemic risks to energy supply, personnel and asset security and the wider economy. A sustainable solution is required to prevent such an extensive interruption of the overall energy security infrastructure and to safeguard national energy security and stability,” he concluded.

Meanwhile, PENGASSAN’s leadership said the decision to suspend the nationwide strike was a mark of respect for federal institutions and ongoing government mediation, emphasizing that it should not be interpreted as an endorsement of Dangote.