The Nigerian National Petroleum Company Limited (NNPCL) has revealed that the recent strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) caused a 16 per cent decline in the nation’s crude oil production.
NNPCL, in a statement on Thursday, explained that the industrial action, which disrupted operations at key oil facilities, significantly hampered output, further threatening Nigeria’s ability to meet its OPEC production quota.
According to the company, the strike led to the shutdown of critical installations, including flow stations and terminals, resulting in daily production losses running into millions of barrels.
>Nigeria lost about 16 per cent of its daily crude output as a direct consequence of the work stoppage. This disruption not only affected government revenue but also posed a setback to ongoing efforts to stabilize the energy sector,” the statement read.
The company, however, noted that it has opened channels of dialogue with the leadership of PENGASSAN to resolve the grievances that prompted the strike. NNPCL assured stakeholders that normal operations are gradually being restored across affected sites.
Meanwhile, energy analysts have expressed concern that continued disruptions in the oil and gas sector could worsen Nigeria’s foreign exchange earnings and stall recovery in the petroleum industry.
PENGASSAN had embarked on the strike over issues bordering on welfare, conditions of service, and unresolved disputes with government and oil firms.
The Federal Government is expected to intervene in the standoff as negotiations continue between the union and industry regulators.
