Seplat workers launch indefinite strike as pay disputes spark fresh concerns over oil output

Workers at Seplat Energy have begun an indefinite strike, raising concerns about oil supply at a time when Nigeria is already dealing with high fuel costs and energy pressure.

The action, which started on Friday, involves members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), a union representing professional oil workers. In letters addressed to the company’s CEO and seen by Reuters, the union said the decision followed a breakdown in negotiations over a 2026 collective bargaining agreement and unresolved welfare concerns.

PENGASSAN stated that the strike would continue “until further notice.” As part of the action, workers are expected to suspend key operations, including production reporting and export activities, while maintaining only essential services such as safety and power.

The strike affects Seplat’s onshore and offshore assets, as well as joint venture operations and offices across the country. However, lower-tier workers under a separate union are not part of the industrial action.

Seplat Energy is Nigeria’s largest independent oil and gas producer, with an average output of approximately 132,000 barrels of oil equivalent per day as of last year, according to its latest audited results. That represents roughly 9 per cent of Nigeria’s total liquids production. The company had projected an increase to 155,000 barrels per day, making any disruption significant for national output.

For workers, the strike reflects long-standing concerns about pay, conditions, and broader welfare issues tied to the new agreement under negotiation. Collective bargaining agreements typically determine salaries, benefits, and working conditions, making them central to labour relations in the oil sector.

For the broader economy, the timing presents a challenge. Nigeria is under pressure to increase crude production and boost foreign exchange earnings, particularly as global oil prices remain sensitive to geopolitical developments. The situation is further complicated by domestic realities, where petrol prices have risen sharply in recent weeks, placing additional strain on households and businesses.

While Seplat has not issued an official response, the potential impact of the strike extends beyond the company. Any sustained reduction in output could affect supply expectations and revenue projections, especially as the country looks to maximise gains from higher oil prices and support refining activities, including those linked to the Dangote refinery.

The development highlights a recurring tension in Nigeria’s oil industry: balancing worker demands with production targets in a sector that remains central to the country’s economy. As negotiations remain stalled, both sides face increasing pressure to reach a resolution that addresses labour concerns without further disrupting supply.

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