Workers at Seplat Energy have begun an indefinite strike over unresolved welfare concerns and stalled negotiations on a new collective bargaining agreement, raising the risk of operational disruption at one of Nigeria’s biggest independent oil and gas producers.
The industrial action began on Friday, with workers under the Petroleum and Natural Gas Senior Staff Association of Nigeria, known as PENGASSAN, saying the strike would continue until further notice.
The union’s action follows a breakdown in talks with management over the 2026 collective bargaining agreement as well as broader staff welfare issues, according to reports by Reuters.
The development comes at a sensitive time for Nigeria’s energy sector, as rising global oil prices and supply pressures have increased expectations for the country to maximize crude and gas output.
According to the union, workers are scaling down most operations, including production reporting and export-related activities, while maintaining only essential services such as safety operations and power functions. The action affects Seplat’s onshore and offshore assets, its joint venture operations, and offices across the country. Junior workers represented by a separate union are not part of the strike.
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As of the time of reporting, Seplat Energy had not issued an official public response to the strike, according to Reuters.
The action is significant because of Seplat’s growing role in Nigeria’s oil and gas output. According to the company’s latest performance figures and Reuters reporting, Seplat’s average daily production rose sharply in 2025 to 131,506 barrels of oil equivalent per day, representing roughly 7 to 9 percent of Nigeria’s total liquids production.
That means any prolonged disruption could have implications not just for the company, but also for Nigeria’s broader energy supply outlook, especially at a time when the country is under pressure to improve crude production, support foreign exchange earnings, and sustain domestic gas supply.
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Seplat had reported a very strong operational performance in 2025, driven by increased output and its first full year of offshore operations.
The company’s expansion in production was supported by both offshore activity and stronger onshore output, with upgrades to the Sapele Gas Plant helping increase gas processing capacity. That has strengthened Seplat’s role not only as an upstream producer but also as a major supplier of gas to power generation companies in Nigeria.
This means the impact of the strike could extend beyond crude oil and exports if it drags on long enough to affect gas supply into the domestic power chain.
Seplat has also been pursuing an ambitious growth strategy.
Management has indicated plans to increase production further to around 155,000 barrels of oil equivalent per day, suggesting that continuity of operations remains critical to the company’s near-term targets and broader investment plans. Reuters noted that the company is trying to ramp up output at a time when Nigeria needs stronger production performance.
The strike therefore introduces uncertainty into what had otherwise been a strong growth story for the company.
It also highlights a recurring challenge in the oil and gas sector: the tension between strong financial performance and unresolved labour concerns.
For workers, the dispute appears to centre not only on pay negotiations but also on broader welfare and employment conditions. For the company, any extended disruption could affect production efficiency, export schedules, and investor sentiment, particularly given Seplat’s dual listing in Lagos and London.
For Nigeria, the timing is especially important.
With global supply dynamics already strained by geopolitical tensions and shifting market conditions, even temporary production interruptions at a major producer like Seplat could add to concerns around output stability and energy reliability.
Much will now depend on how quickly both sides return to the negotiating table.
Until then, the strike remains a developing labour dispute with potentially wider implications for production, exports, and domestic gas supply in one of Nigeria’s most strategically important energy companies.
