Fresh tension is brewing in Nigeria’s oil and gas sector as oil workers have shut down the operations of Seplat Energy Plc across multiple locations nationwide.

Vanguard Newspapers gathered the total shutdown, which began today, followed a directive by the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, for an immediate withdrawal of services at Seplat Energy Plc across multiple locations nationwide.

The move, which affects operations in Lagos, Abuja, Port Harcourt, Eket, QIT, and offshore assets, signals a major escalation in the dispute between workers and management over unresolved welfare issues and stalled negotiations on the 2026 Collective Bargaining Agreement CBA.

The industrial action is expected to have significant implications for Nigeria’s crude oil output, particularly at a time when the global energy market remains volatile.

Any disruption to Seplat’s onshore and offshore production—especially given its recent expansion and increased contribution to national output—could further strain supply chains, weaken export volumes, and impact government revenues already under pressure.

Analysts warn that prolonged shutdowns may also affect investor confidence in Nigeria’s oil sector, as the country struggles to maintain production targets amid rising global demand and geopolitical uncertainties.

Vanguard Newspapers gathered that officials of PENGASSAN have already communicated with all appropriate authorities on the development through Itohowo ‘Kastro’ Ekop (Branch Secretary, PENGASSAN SEPNU Branch) and Oghenedoro Oviesa) Branch Secretary, PENGASSAN SEPNU Contract Branch.

In one of the letters sighted by Vanguard Newspapers, the aggrieved leaders of the workers wrote, “On behalf of the Branch Secretariats and Branch Executive Committees (BECs) of the PENGASSAN SEPNU Branch and the PENGASSAN SEPNU Contract Branch, this notice serves to formally update members on ongoing engagements with Seplat Energy PLC Management regarding staff welfare and the 2026 Collective Bargaining Agreement (CBA).

“Over the past thirteen (13) weeks, the Branch Executive Committees have engaged Management in extensive negotiations concerning the 2026 CBA and critical welfare issues affecting employees and contract staff. These discussions included interventions from the Federal Ministry of Labour and Employment and the Nigerian National Petroleum Company Limited (NNPCL).

“Regrettably, despite the Association’s constructive approach and the significant contributions of members—particularly to Seplat Offshore’s strong 2025 performance (including 144% revenue growth to $2.7 billion, 87% profit growth before tax, and a 52% dividend increase)—Management has failed to address key welfare concerns and has not concluded the 2026 CBA negotiations. Notably, Management did not attend a pre-agreed meeting scheduled for April 2, 2026.

“Further concerns include persistent maltreatment of offshore contract personnel, non-payment of salaries, unfair staff categorization and ongoing casualization, unjust demotions under the guise of “integration”, a skewed pay harmonization system affecting career progression and earnings and poor and overcrowded accommodation in field locations.

“Having exhausted all avenues for dialogue and following consultations with relevant stakeholders, the Branch Executive Committees hereby direct as follows: All members of the PENGASSAN SEPNU Branch and Contract Branch are to withdraw all services with immediate effect across all company locations until further notice.

“All members must strictly adhere to the following: Withdrawal applies to Lagos, Abuja, Eket, QIT, Port Harcourt, JVO/Offshore, and BRT locations. No issuance of work permits in any field location, leave laptops in the office; do not take them home, and do not log in to any company system or participate in meetings (office or remote).

“Do not log into systems or perform work-related duties, suspend participation in reports, meetings, and operational documentation.

“Only maintain safe plant monitoring and utilities, remain in quarters; no maintenance work except essential utilities, suspend all contractor activities, vacate all non-unionised personnel from worksites and control rooms, take control of all such facilities and no participation in export or offloading operations.

“This withdrawal does not mean abandonment of duty posts. Ensure all facilities are brought to a safe state, maintain essential services for safety, power, and utilities and protect assets from intrusion.

“Logistics support (air and sea) will be provided where necessary for safety and welfare. A Union Command Centre (UCC) has been established, and further communication channels will be shared accordingly.

“This action is taken out of necessity to protect the dignity, welfare, and rights of members. All members are urged to remain united, disciplined, and committed.

“For clarifications, contact your Chapter Chairman or Secretary, copying the Branch Secretary. No exemption requests will be granted.” (Vanguard)

Update news