September 30, (THEWILL) — The Nigerian National Petroleum Company (NNPC) Limited has warned that the ongoing industrial dispute between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Dangote Refinery is threatening national energy security, with significant disruptions already recorded in oil, gas, and electricity supply.
In a letter addressed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), sighted by THEWILL, NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, disclosed that within the first 24 hours of the strike, which began on September 28, the country suffered losses of about 283,000 barrels of oil per day (bopd), 1.7 billion standard cubic feet of gas per day (bscfd), and over 1,200 megawatts (MW) of power.
“These losses represent about 16% of national oil output, 30% of marketed gas, and 20% of electricity generation. If the situation persists, the impacts will deepen, posing a material threat to national energy security”, Ojulari warned.
Warning of widespread disruptions, the NNPC boss said the strike has led to office closures, field shutdowns, and significant production deferments across joint ventures and production-sharing contracts.
In his highlights, Ojulari said the Bonga Floating Production Storage and Offloading (FPSO) unit is currently shut down, deferring 120,000 bopd.
Also at Oben gas plant, Afam 6, and Okpai power plants, Ojulari said PENGASSAN action halted production of 400 mmscfd of gas and 18,000 bopd of oil, disrupting over 1,200 MW of power supply to Afam, Okpai, Egbin, Azura, and Transcorp plants.
While Shell Nigeria Gas is deferring 50 mmscfd, affecting industrial customers in Agbara-Ota, export operations have been delayed at major terminals including QIT, OML 42, Akpo/Egina, and Brass, raising risks of demurrage costs, Ojulari added.
The disruptions are also delaying critical maintenance and project delivery, with knock-on effects expected to hinder future production growth. Ojulari projects immediate and compounding revenue losses from missed liftings and gas sales.
While NNPC has activated Business Continuity Plans and deployed non-union staff to sustain limited operations, Ojulari stressed that the ongoing crisis transcends Dangote Refinery and now threatens national energy stability.
“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 extensive interruption of the overall energy security infrastructure”, the letter dated September 29th, stated.
Ojulari confirmed that NNPC has engaged security agencies, including the National Security Adviser and the Department of State Services (DSS), as part of ongoing efforts to mitigate the crisis.
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