NNPCL Reports Revenue and Production Figures for September
The Nigerian National Petroleum Company Limited (NNPCL) has reported that it generated a revenue of N4.26 trillion in the month of September. This figure represents a slight decline from the N4.40 trillion recorded in August. The decrease is attributed to a reduction in crude oil production during the month, which dropped to 1.61 million barrels per day. This includes 1.37 million barrels of crude oil and 240,000 barrels of condensate.
Despite the drop in revenue, the company’s profit after tax increased to N216 billion, up from N185 billion in August. Additionally, the company made statutory payments totaling N10.073 trillion from January to August, while producing 6.28 billion cubic meters of natural gas per day.
Factors Affecting Production Levels
Production levels during the period were temporarily moderated due to planned maintenance activities, including those at the Nigeria LNG (NLNG) facility. The phased recovery of previously shut-in assets and delays in the commencement of operations at OMLs 71 and 72 also contributed to the reduction in output.
The company emphasized its sustained focus on the Ajaokuta-Kaduna-Kano pipeline, with substantial progress being made toward the completion of mainline works. On the OB3 (River Niger Crossing) project, the implementation of a revised execution strategy is underway to ensure timely delivery.
The 113km portion of the OB3 Gas Pipeline has been commissioned and is currently flowing approximately 300 million standard cubic feet per day (mmscf/d) of gas from the following producers:
- AHL: 250 mmscf/d
- Platform, Chorus, and Xenergi: 50 mmscf/d
Maintenance Activities and Strategic Focus
Credible industry sources indicate that NNPC Limited has initiated a series of scheduled maintenance activities across key upstream assets, including facilities linked to the NLNG network. These planned interventions coincide with the phased recovery of previously shut-in fields and the onboarding of new assets. The company views this as part of a broader strategy to optimize output and enhance infrastructure reliability.
While recent production levels reflect a temporary moderation, industry insiders see this as a necessary recalibration to ensure stronger performance in the fourth quarter and beyond. A senior regulatory official noted, “You don’t build resilience by pushing volume only; you build it by maintaining the integrity of your assets.”
With most of the maintenance nearing completion, stakeholders anticipate a rebound in crude and gas volumes as systems come back online. This phase marks a strategic reset, positioning Nigeria’s energy sector for more consistent and secure output in the months ahead.
Impact of the PENGASSAN Strike
There are concerns that the trend might continue this month following a strike embarked upon by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over its issue with the Dangote Refinery. According to the NNPCL GMD, Engr. Bayo Ojulari, Nigeria lost 200,000 barrels per day of crude oil during the three-day supply disruption caused by the strike. This resulted in a total loss of over 600,000 barrels.
Ojulari stated, “I think it was unfortunate that the Dangote and PENGASSAN issue led to a strike, and whenever there is a strike and critical staff manning critical facilities are not available, optimum production is almost impossible. In this particular case, we actually lost significant production of over 200,000 bpd that was deferred.”
He added that gas production and power generation were also impacted, with about 1.2 megawatts of power affected by the strike. However, he expressed hope that the federal government’s intervention through the Minister of Labour and the National Security Adviser would lead to a resolution.
Legislative Response to the Dangote Refinery Dispute
Even as the crisis between the House of Representatives and the management of the Dangote Refinery continued, the legislative body resolved to wade into the recent face-off between the refinery’s management and PENGASSAN. This decision followed a motion of urgent national importance sponsored by lawmakers concerned about the implications of the industrial action on Nigeria’s oil production, fuel supply, and investment climate.
The lawmakers highlighted the significance of the Dangote Refinery as a strategic national asset, emphasizing its potential to ensure energy security, reduce import dependence, generate employment, and conserve foreign exchange. They also raised concerns about the impact of labor actions on future investments and economic growth.
Call for Dialogue and Resolution
Ibenanaowei of Ekpetiama Kingdom in Bayelsa State and Chairman of the Bayelsa Traditional Rulers’ Council, King Bubaraye Dakolo, reiterated the importance of dialogue in resolving any issues between the refinery’s management and unions. He described the birth of the refinery as a “death knell” to those he called “subsidy racketeers.”
Dakolo emphasized the need for existing refineries to function effectively and urged responsible actions from those in charge. He concluded, “Change must come and change has come in Dangote refinery, and those who are interested in change would also do something similar somewhere.”
