The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has shut down operations at the Oil Mining Lease (OML-18) facility in Rivers State due to a labour dispute with NNPC Eighteen Operating Limited (NEOL), a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL).
The shutdown follows the expiration of a 14-day ultimatum and an additional grace period without resolution, with PENGASSAN accusing NEOL management of being unresponsive to their demands.
The union’s grievances include non-deduction and remittance of outstanding check-off dues for members attached to ND Engineering Limited, failure to redeploy members to other contractors, refusal to respond to the Charter of Demands for Collective Bargaining Agreement negotiations, and non-recognition of the Branch Executive Committee’s rights and privileges.
PENGASSAN warned that the strike will continue until NEOL addresses all concerns, which could significantly disrupt operations and impact revenue flows.
OML-18, located along the Cawthorne Channel between Degema and Akuku Toru Local Government Areas, is a major upstream asset with significant crude oil output.
The block has eight key producing fields, including Cawthorne Channel, Akaso, Awoba, Alakiri, and three yet-to-be developed fields.
NEOL took over as operator of OML-18 in March 2023, replacing Eroton Exploration and Production Limited, due to concerns over asset degradation and performance.
