Bayo Ojulari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), disclosed that the recent strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) resulted in a daily crude oil production shortfall exceeding 200,000 barrels. This industrial action also caused significant interruptions in gas supply and power generation nationwide.
Ojulari shared these insights on Sunday evening following a briefing with President Bola Tinubu at his Lagos residence, where he updated the President on the current state of the oil and gas industry and the advancement of NNPCL’s reform initiatives.
The CEO highlighted that the strike severely impacted essential operations at major oil and gas installations, forcing a temporary halt in power generation that led to a loss of approximately 1,200 megawatts.
“The strike triggered by the Dangote and PENGASSAN dispute was regrettable. When key personnel responsible for critical infrastructure are unavailable, maintaining operations becomes nearly impossible,” Ojulari explained.
“This disruption caused a deferral of over 200,000 barrels of crude oil production daily. Gas output was also compromised, and power generation dropped by about 1,200 megawatts.”
He praised the federal government’s prompt response in addressing the crisis, emphasizing the pivotal roles played by the Ministry of Labour and the Office of the National Security Adviser (NSA) in facilitating a resolution.
“I am encouraged that, under the leadership of the Minister of Labour and with strong support from the NSA, all parties were brought together. A consensus on the path forward has been reached, and we are optimistic that the agreement will be honored,” he stated.
Ojulari noted that production has since stabilized, with most facilities resuming full operations, and efforts are ongoing to recover the deferred output.
“We have largely restored production to previous levels. While there remain a few areas requiring catch-up, overall, the lost output is being gradually recovered,” he added.
Addressing the recent surge in Liquefied Petroleum Gas (LPG) prices, commonly known as cooking gas, Ojulari described the hike as temporary and largely artificial, attributing it to logistical challenges during the strike.
“The price increase was mainly due to supply chain delays over two to three days during the strike. This created a supply gap that some with reserves exploited,” he said.
“With normal operations resuming, LPG prices are expected to revert to their pre-strike levels.”
Looking ahead, Ojulari expressed confidence in Nigeria’s production trajectory, highlighting that the country achieved its highest oil output in five years-1.68 million barrels per day-in September, alongside a record gas production exceeding 7 billion standard cubic feet per day.
He reiterated NNPCL’s dedication to President Tinubu’s goal of increasing national oil production to two million barrels per day by 2027 and three million barrels per day by 2030, while also boosting gas production and attracting further investments.
“Our mission is clear: expand oil and gas capacity, draw in investments, and secure the nation’s energy future. With the maintenance and recovery strategies underway, we anticipate reaching approximately 1.8 million barrels per day by year-end,” Ojulari affirmed.
He concluded by assuring that NNPCL remains committed to consolidating gains, enhancing operational efficiency, and maintaining open communication with stakeholders to avert future disruptions in Nigeria’s energy supply chain.
