Nigeria’s Seplat Energy faces strike as output expansion plan advances

Seplat Energy, the Nigerian independent oil and gas producer, co-founded by Austin Avuru, is facing an indefinite strike that risks disrupting production just as global oil prices rebound and Nigeria intensifies efforts to boost crude oil output and gas supply.

Members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have halted most operational activities following a breakdown in negotiations over a 2026 collective bargaining agreement, wages, and staff welfare, raising fresh concerns about Nigeria’s energy security and export volumes.

Operations curtailed across key oil and gas assets

The union said workers will suspend production reporting, crude export logistics, and administrative operations, maintaining only critical safety and power functions. 

The strike spans onshore and offshore assets, joint venture operations, and corporate offices nationwide, although junior staff represented by a separate union remain at work.

The disruption comes at a sensitive time for Nigeria’s oil sector, where Seplat accounts for an estimated 7%–9% of total liquids production and plays a strategic role in domestic gas-to-power supply.

Growth strategy under pressure

Seplat Energy has been ramping up investment to expand production capacity to about 155,000 barrels of oil equivalent per day (boepd), positioning itself as a key driver of Nigeria’s upstream growth and gas monetization strategy. Any prolonged shutdown could derail output targets and tighten supply to both domestic and international markets.

Dual-listed on the Nigerian Exchange and the London Stock Exchange, Seplat commands a market capitalization of about N5.46 trillion ($4 billion), underscoring its status as Nigeria’s most valuable listed energy company. 

Recent milestones include the offshore IGE replacement project and the onshore Sapele gas plant, both central to boosting gas processing capacity.

Strategic assets amplify disruption risks

Seplat’s portfolio spans 11 oil and gas blocks across the Niger Delta, with critical infrastructure including export terminals, floating storage units, and natural gas liquids (NGL) recovery plants. Key assets include stakes in Qua Iboe and Bonny River export terminals, as well as gas processing hubs at Oben, Sapele, and the ANOH gas plant.

With Nigeria targeting higher oil output and gas-led industrial growth, the strike highlights persistent labor risks that could weigh on investor confidence and the country’s broader energy outlook.