‘Why NNPCL revenue, oil production dropped in September’

The Nigerian National Petroleum Company Limited (NNPCL) has stated that it generated N4.26tr revenue in the month of September. This is a decrease from the N4.40trn it generated in August and this is due to the reduction of crude oil the company produced during the month which dropped to 1.61m barrels per day consisting of […]

The Nigerian National Petroleum Company Limited (NNPCL) has stated that it generated N4.26tr revenue in the month of September.

This is a decrease from the N4.40trn it generated in August and this is due to the reduction of crude oil the company produced during the month which dropped to 1.61m barrels per day consisting of 1.37m (bpd) of crude oil and 240,000 condensate.

However, its profit after tax increased to N216bn from the N185bn it made in August.

It added that it made statutory payments from January to August to the tune of N10.073tr. while 6.28bn (mmscf/d) natural gas was produced.

“Production levels during the period were temporarily moderated due to planned maintenance activities including those at NLNG alongside the phased recovery of previously shut-in assets and delays in the commencement of operations at OMLs 71 and 72.”

It added that there is sustained focus on the Ajaokuta-Kaduna-Kano pipeline being directed towards completion of the mainline works with substantial progress being recorded.

On OB3 (River Niger Crossing), it said the implementation of revised execution strategy is underway to ensure delivery within target timelines.

The 113km portion of OB3 Gas Pipeline has been commissioned and flowing circa 300mmscf/d of gas from the following gas producers: *AHL – 250mmscf/d *Platform, Chorus & Xenergi – 50mmscf/d.

 

…shortfall linked to upstream assets maintenance

Credible industry sources say NNPC Limited has embarked on a series of scheduled maintenance activities across key upstream assets, including facilities linked to the Nigeria LNG (NLNG) network.

These planned interventions, which also coincide with the phased recovery of previously shut-in fields and the onboarding of new assets, are part of a broader strategy to optimize output and enhance infrastructure reliability.

While recent production levels reflect a temporary moderation, industry insiders view this as a necessary recalibration to ensure stronger performance in Q4 and beyond.

“You don’t build resilience by pushing volume only, you build it by maintaining integrity of your assets,” one senior regulatory official noted.

With most of the maintenance now nearing completion, stakeholders anticipate a rebound in crude and gas volumes as systems come back online, according to some officials.

The move also underscores NNPC Limited’s proactive approach to asset stewardship and its role in sustaining industry-wide collaboration for production recovery.

Rather than a setback, this phase marks a strategic reset- one that positions Nigeria’s energy sector for more consistent and secure output in the months ahead.

There are concerns that the trend might continue this month following the strike embarked upon by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over its issue with the Dangote Refinery.

The NNPCL GMD, Engr. Bayo Ojulari had indicated that Nigeria lost 200,000 barrels per day of crude oil to the recent strike action embarked upon by the nation’s oil workers, culminating in a total of over 600,000 barrels during the three-day supply disruption.

The GMD said, “I think it was unfortunate that the Dangote and PENGASSAN issue led to strike and whenever there is strike and critical staff manning critical facilities are not available and optimum production is almost impossible. In this particular case, we actually lost significant production of over 200,000 bpd that was deferred.

“We also have gas production that was deferred, we also have power generation that was impacted by about 1.2 megawatts of power that was affected by that strike,” he said.

Ojulari added: “I’m very pleased that the federal government through the leadership of the Minister of Labour and full support of the National Security Adviser was able to put together everyone into a dialogue and brought everybody to the table and now there has been a communiqué that has been agreed on the way forward.

“We are all very hopeful that everyone will abide by the communique, since then we have been able to return production back to status quo, there has been one or two areas that we are still trying to catch up with. Overall, we have gradually gone back to restore lost production and the deferment that we have as of today,” he added.

Ojulari further stated that Nigeria has been able to step up crude oil production with effect from last month, saying 1.68 million barrels per day were produced in September, 2025 while 7 billion cubic feet of gas was also produced per day during the same period.

 

…Reps move to resolve Dangote Refinery, PENGASSAN face-off

Even as the crisis between The House of Representatives on Tuesday resolved to wade into the recent face-off between the management of Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which recently resulted in a strike action that disrupted operations at the $20 billion refinery in Lagos.

The decision followed a motion of urgent national importance jointly sponsored by Alhassan Ado Doguwa (APC, Kano) and Abdussamad Dasuki (PDP, Sokoto)  raised on the floor of the House, where the lawmakers expressed concern over the implications of the industrial action on Nigeria’s oil production, fuel supply, and investment climate.

Doguwa, who moved the motion, noted that the strike, which disrupted activities at the refinery located in the Lekki Free Trade Zone, led to an estimated loss of about 200,000 barrels of crude oil per day over a three-day period.

He added that the shutdown worsened the already fragile fuel supply situation across the country, causing scarcity and long queues at filling stations in several states.

The lawmakers described the Dangote Refinery as a strategic national asset with the potential to ensure energy security, reduce import dependence, generate employment, and conserve foreign exchange.

They further observed that the refinery, being situated within a Free Trade Zone, falls under the regulatory authority of the Nigeria Export Processing Zones Authority (NEPZA), in line with Section 18(5) of the NEPZA Act, which stipulates that employment within such zones shall be governed by the rules and regulations of the Authority and not by general labour laws.

The lawmakers expressed concern that labour actions that ignore these legal provisions could discourage future local and foreign investments, create instability in the business environment, and undermine national economic growth.

Consequently, the House resolved to urge the leadership of the House, under Speaker Abbas Tajudeen, to wade into the matter and facilitate a peaceful resolution between PENGASSAN and the management of Dangote Refinery.

 

…Only dialogue will resolve issues

Ibenanaowei of Ekpetiama Kingdom in Bayelsa State, Nigeria and Chairman of Bayelsa Traditional Rulers’ Council, King Bubaraye Dakolo reiterated that dialogue is imperative to resolve any issue between the management of the refinery and the unions.

According to him, the birth of the refinery sounded a death knell to those he called ‘subsidy racketeers.’

“The real oil thieves are not in the Niger Delta but the subsidy racketeers,” he said, adding that efforts must be geared towards making existing refineries to work.

He said, “You cannot have a group of people somewhere earning billions every year for literally doing nothing. If for close to 20 years, our refineries have just been there in name and not producing anything and apart from that, they have gulped about N18bn, so what are they there for?

“So the right thing has to be done, which is what I call the needful. Let those who are responsible do what Nigerians would consider a responsible action.

“Apart from that, change must come and change has come in Dangote refinery and those who are interested in change would also do something similar somewhere.”