Seplat Energy Resumes Operations as PENGASSAN Suspends Strike for Ongoing Negotiations
Operations at Seplat Energy Plc have returned to normal across its assets following the suspension of an indefinite strike by the Petroleum and Natural Gas Senior Gas Senior Staff Association of Nigeria. This development brings temporary relief to Nigeria's oil and gas sector after a day of disruption concerns that threatened to impact crude oil output.
Background of the Industrial Action
The industrial action, which commenced on Friday, was triggered by a breakdown in negotiations between the company and the union over a new 2026 collective bargaining agreement. Unresolved issues relating to staff welfare and pay further complicated the situation, leading PENGASSAN to direct its members to embark on the strike until further notice.
During the strike period, critical operations were scaled down, including production reporting and export activities. Only essential services such as safety and power functions were maintained to prevent catastrophic failures.
Impact on Nigeria's Oil Sector
The action affected Seplat's onshore and offshore assets, as well as joint venture operations and offices nationwide. This raised significant concerns about potential disruptions to crude oil output at a time when Nigeria is under pressure to ramp up production and boost foreign exchange earnings.
Seplat Energy, one of Nigeria's largest independent oil and gas producers, accounts for an estimated 7 to 9 percent of the country's total liquids production. The company maintains an average output of over 130,000 barrels of oil equivalent per day, making any disruption particularly concerning for national revenue.
Suspension and Resumption of Operations
Amid fears of prolonged disruption, particularly given rising global oil prices and tightening supply conditions, the suspension of the strike is seen as a critical intervention to stabilise operations. In a response to media inquiries, Seplat Energy confirmed that the union had agreed to halt the industrial action following constructive engagements.
The company stated: Following sustained and constructive engagement with PENGASSAN and relevant parties, we can confirm that the union has suspended its notice of industrial action to allow negotiations to conclude on outstanding items within an agreed framework. We can confirm that operations are re-commencing at our various locations. We appreciate the collaborative efforts of all involved and remain confident of a satisfactory conclusion in line with established processes.
Ongoing Negotiations
For now, the resumption of operations across Seplat's facilities offers a reprieve to the oil sector. Both parties continue negotiations aimed at resolving outstanding issues around:
- Staff compensation and pay structures
- Welfare provisions for employees
- Working conditions across operations
- The 2026 collective bargaining agreement framework
The temporary suspension allows for continued dialogue while maintaining critical oil production activities that contribute significantly to Nigeria's economy and energy security.
