PENGASSAN Strike Slashed Nigeria's Oil Output by 16% - NNPCL

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A short-lived nationwide walkout by senior oil workers plunged Nigeria's crude production by 283,000 barrels per day—a 16 percent hit—and knocked out 1.7 billion cubic feet of gas daily, while dimming over 1,200 megawatts of power, the state led oil firm NNPCL reports.

The Petroleum and Natural Gas Senior Staff Association of Nigeria halted operations last week over the dismissal of 800 unionized staff at the Dangote Refinery, Africa's largest. Nigerian National Petroleum Company Limited chief Bayo Ojulari detailed the fallout in a September 29 letter to regulators, warning of mounting revenue shortfalls from missed shipments and sales that could strain cash flows and national energy security if unchecked.

Facilities like Shell's Bonga floating unit and the Oben gas plant ground to a halt, delaying Nigeria LNG restarts and cargo loadings at export hubs such as Akpo, Brass, and Egina—risking demurrage fees and slipping five key maintenance timelines.

The action's scope stretched beyond Dangote, underscoring how labor tensions can cascade through the entire chain.

PENGASSAN suspended the strike after government-brokered talks, averting deeper chaos, but Ojulari stressed lingering vulnerabilities as enduring threats.

Unions maintain the sackings violated rights, while industry watchers eye it as a wake-up for dialogue amid rising operational strains.

As production claws back, the episode highlights Nigeria's oil dependency—where a brief standoff can echo billions in losses—and the urgent need for buffers against such shocks in a sector vital to 90 percent of export earnings.

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