Nigeria's Upstream Oil Operations Secure as FG Resolves Sterling Oil and PENGASSAN Dispute

• Earlier in 2025, PENGASSAN threatened to embark on a national strike and disrupt Nigeria's upstream oil operations
• The group wanted the federal government to act quickly on the anti-labour practices and discrimination against Nigerians in Sterling Oil
• Months after the federal government's intervention, both parties have shaken hands on the matter and reached a new agreement

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The federal government’s intervention has helped broker a truce between the Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

It has been confirmed that both parties have resolved all the issues that threatened to disrupt the entire upstream operations in Nigeria’s petroleum industry.

Sources disclosed that there were a series of meetings and collaborative engagements between the groups, as facilitated by the government, and it eventually led to a fresh agreement on June 4, 2025.

PENGASSAN threatens national strike over discrimination

In March 2025, PENGASSAN threatened to disrupt upstream operations across Nigeria if the anti-labour issues are not addressed.

The group had raised its concerns about anti-labour practices going on in Sterling Oil Exploration and Energy Production Company (SEEPCo) in a protest at the company’s head office last week.

It claimed that the company was discriminating against Nigerians in favour of Indian nationals and violating the NOGICD Act.

Speaking at a press conference in Abuja, the PENGASSAN President, Festus Osifo, asked the government to step into the matter and force SEEPCo to remove its 10,699 Indian expatriates working across 15 locations and employ qualified Nigerians into the position.

He threatened that the union would withdraw its members and disrupt every upstream operation in Nigeria.

NCDMB intervenes in Sterling Oil, PENGASSAN dispute

In the following weeks, the Nigerian Content Development and Monitoring Board (NCDMB) vowed to take action against the company for repeatedly violating the local content directives.

In its statement, the board noted that the number of Nigerians occupying key managerial and technical positions in other IOCs could be traced to the enforcement of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010.

This particularly affects the Expatriate Quota, Succession Plan, Deployment of Expatriates Guidelines, and Expatriate Work Temporary Work Permit Guidelines, and Sterling Oil had to comply.

Sterling Oil, PENGASSAN reach a truce

The new agreements reached by PENGASSAN and Sterling Oil will sustain industrial operations in Nigeria’s upstream sector without compromising the overall welfare of the workers in the oil and gas sector.

According to the NATION, sources confirmed that the agreement adheres to federal laws and industry regulations guiding the upstream petroleum sector.

They have also committed to internal resolution of issues and proactive engagements to prevent and address future issues that may arise, while sustaining long-term collaboration and mutual respect.

Oil company pledges compliance

As part of the agreement, Sterling Oil pledged to comply with the regulations, foster capacity development for the Nigerian professionals in its workforce, and sustain open dialogue.

The oil company thanked all the stakeholders, including PENGASSAN leadership, the Ministry of Labour and Employment, the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and NNPC Limited, for their role in the dispute resolution.

FG recovers $19.2 million debt from two oil companies

In related news, the federal government has recovered outstanding revenues of $19.24 million from two oil companies.

The companies include Chorus Energy, which paid a debt of $847,632, and Seplat, which paid $18.39 million.

The debt recoveries came from unremitted royalties in the past, and they were recovered in March 2025 and remitted to the Federation Account.

Source: Legit.ng