Oil production at Oil Mining Lease (OML-18) in Rivers State has come to a standstill after members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) launched a full-scale strike against NNPC Eighteen Operating Limited (NEOL), a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL).
The facility, situated along the Cawthorne Channel between Degema and Akuku Toru Local Government Areas, was shut on Wednesday following a strike directive issued by PENGASSAN’s Port Harcourt Zonal Assistant General Secretary, Sere Nwikiabeh, instructing members to “withdraw your services immediately until our demands are met.”
Ultimatum Expires, Talks Stall
According to the union, the shutdown follows the expiration of a 14-day ultimatum and an additional grace period without resolution. PENGASSAN accused NEOL management of being “adamant” despite repeated engagement sessions.
The association listed its grievances as:
- Non-deduction and remittance of outstanding check-off dues for members attached to ND Engineering Limited
- Failure to redeploy such members to other contractors
- Management’s refusal to respond to its Charter of Demands to commence branch Collective Bargaining Agreement negotiations
- Continued non-recognition of the Branch Executive Committee’s “due rights and privileges”
Unfair Labour Practices Alleged
In a July 14, 2025 letter, PENGASSAN accused NEOL of “persistent unfair labour practices,” including refusal to remit union dues, ignoring the Charter of Demands, and sidelining elected branch leaders.
“Despite several reminders and engagements, management has continually failed to address these matters,” the union stated, warning that the industrial action would remain in force until all concerns are addressed.
Impact on Oil Operations
The strike is expected to cause significant disruption to NEOL’s operations, with PENGASSAN vowing to “take every lawful step necessary” to protect members’ rights and interests. Industry observers warn that prolonged downtime at OML-18 could have ripple effects on Nigeria’s crude output targets.
