Workers at Seplat Energy began an indefinite strike on Friday, a move that could disrupt production at a time of rising global oil prices and mounting pressure on Nigeria to boost supply.
The workers, under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), embarked on the industrial action following a breakdown in negotiations over the 2026 collective bargaining agreement and broader welfare concerns.
|
|
The union communicated its grievances in two letters addressed to the company’s Chief Executive Officer, Reuters reported on Friday.
The workers said the strike would continue “until further notice.”
|
|
|
|---|
Seplat Energy had not issued an official response as of the time of filing this report.
However, PENGASSAN indicated that its members would scale down operations, including production reporting and export activities, while maintaining only essential safety and power functions.
The strike affects the company’s onshore and offshore assets, joint venture operations, and offices nationwide. Junior workers, represented by a different union, are not part of the action.
Stay Ahead with Premium Times
Follow us on Google News and never miss breaking stories, investigations, and in-depth reporting.
Add as a preferred source on Google
The industrial action comes despite the company’s strong operational performance in 2025. Seplat reported a 150.4 per cent increase in revenue to N4 trillion, driven by a significant expansion in output and its first full year of offshore operations.
Average daily production rose by 148 per cent to 131,506 barrels of oil equivalent per day (boepd), representing roughly 7 to 9 per cent of Nigeria’s total liquids output.
Onshore production also grew by 14 per cent, supported by upgrades to the Sapele Gas Plant, which increased processing capacity to 90 million standard cubic feet per day.
Despite the surge in revenue, profit growth remained constrained by rising costs, including substantial tax obligations.
The company projects production to increase to 155,000 boepd, underscoring the potential impact of any prolonged disruption.
“We benefitted from successful execution of several key offshore activities that kick-started life for Seplat as an offshore operator, while at the same time delivering onshore production performance that was the strongest in recent memory,” the CEO, Roger Brown, said.
ALSO READ: Seplat Energy appoints two independent non-executive directors
He added that drilling would remain central to the company’s long-term growth strategy, with plans to deploy its first jack-up drilling rig in the third quarter of the year.
Seplat, which is dual-listed in Lagos and London, also declared a fourth-quarter dividend of 5 cents per share and a special dividend of 3.3 cents. Mr Brown said the firm is on track to deliver cumulative returns of $1 billion to shareholders by 2030.
The strike comes amid ongoing geopolitical tensions in the Middle East that have tightened global oil supply, heightening the potential impact on Nigeria if the disruption persists.
Seplat is a major supplier of gas to power generation companies across the country. Any sustained disruption to its operations could further strain the electricity supply nationwide.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
More News
