By Atoyebi Nike

Nigeria’s oil and gas production fell sharply during a nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which ended Wednesday after government-brokered talks with Dangote Refinery.

The strike, which began September 28, followed the dismissal of workers at the refinery, Africa’s largest crude processor. In a September 29 letter, NNPC Ltd CEO Bayo Ojulari warned of “significant revenue losses” and systemic risks to energy supply, security, and the wider economy.

Ojulari said production deferments reached about 283,000 barrels per day of oil, 1.7 bscfd of gas, and over 1,200 MW of power generation within 24 hours equivalent to 16% of national oil output, 30% of marketed gas, and 20% of power supply.

Key facilities including the Bonga FPSO, Oben gas plant, and Nigeria LNG’s Trains 5 and 6 faced shutdowns or delays, while export cargoes at Akpo, Brass, and Egina terminals were stalled. The disruptions risked demurrage costs and project delays.

PENGASSAN had ordered the strike after Dangote Refinery dismissed some workers. The group denied reports of mass layoffs, calling the restructuring limited and necessary for security. The union suspended its strike after talks, easing immediate supply risks, though NNPC cautioned that vulnerabilities remain.

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