Mkpoikana Udoma
Port Harcourt — Operations at Oil Mining Lease, OML18 in Rivers State have been brought to a halt following an industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, against NNPC Eighteen Operating Limited, NEOL, a subsidiary of the Nigerian National Petroleum Company Limited, NNPC Ltd.
The shutdown came after the expiration of a 14-day ultimatum and an extended grace period given to the company to address what the union described as “persistent unfair labour practices.”
In a strike directive signed by Comrade Sere Nwikiabeh, Assistant General Secretary of PENGASSAN, Port Harcourt Zone, the union ordered members to withdraw their services immediately until their demands are met.
“Following the expiration of the ultimatum and the extended grace period, Management have remained adamant to our demands. You are hereby directed to withdraw your services immediately until our demands are met,” PENGASSAN said.
The union’s demands include the deduction and remittance of all outstanding check-off dues for members attached to ND Engineering Limited, or alternatively, their redeployment to other contractors; a formal response to the Charter of Demands for the commencement of Branch Collective Bargaining Agreement (CBA) negotiations; and the recognition of the Branch Executive Committee’s rights and privileges.
PENGASSAN accused NEOL management of ignoring multiple reminders and engagements on these issues.
In an earlier letter dated July 14, 2025, the union warned of imminent action if the company failed to comply. “Despite several reminders and engagements, Management has continually failed to address these matters,” the letter read.
The union further cautioned that the refusal to act would compel it “to take all necessary steps, including lawful industrial action, to protect the rights and interests of our members,” adding that it would not be held responsible for any disruption to industrial peace or business operations.
OML18, located within the Cawthorne Channel region of Rivers State, was previously operated by Shell JV, and later sold to Eroton who operated the block from 2015 to 2023. In March 2023, NNPCL JV removed Eroton as operator due to concerns over asset degradation and performance, while NEOL was appointed as the new operator.
The block which has eight key producing fields including Cawthorne channel, Akaso, Awoba, Alakiri and three yet-to-be developed fields, is a major upstream asset with significant crude oil output. The shutdown is expected to impact production volumes and could affect revenue flows for both the operator and the Nigerian government.
The dispute also brings into focus the broader challenges between oil workers’ unions and operating companies in Nigeria’s petroleum sector, particularly on issues of welfare, representation, and collective bargaining rights.
As of the time of filing this report, NEOL management had not issued a public statement on the industrial action.
