The Federal Government, through the Nigerian Content Development and Monitoring Board, has announced measures to address the alleged anti-labour practices of Sterling Oil Exploration and Energy Production Company.
The board also highlighted Sterling Oil’s repeated violations of its local content directives, warning that it will not hesitate to sanction companies that blatantly disregard its regulations.
Last week, members of the Petroleum and Natural Gas Senior Staff Association of Nigeria, led by their president, Mr. Festus Osifo, staged a protest at SEEPCO’s headquarters on Victoria Island, Lagos, condemning the company’s alleged anti-labour practices and expatriate abuses. Osifo criticized Sterling Oil’s management for violating the expatriate quota system, stating that this had resulted in discrimination against skilled Nigerian workers in the oil and gas sector.
He accused the company of engaging in discriminatory practices by reserving jobs that qualified Nigerians could perform exclusively for Indian nationals.
“Our members in Sterling have been sidelined,” he said. “They should tell us how many Nigerians currently hold managerial positions at Sterling Oil. How many Nigerians are general managers there?
“In contrast, other international oil and gas companies have Nigerians serving as managing directors, deputy managing directors, executive general managers, and general managers,” Osifo added.
In a statement on Monday, the NCDMB praised the PENGASSAN leader for recognizing that qualified Nigerian professionals hold top leadership and technical positions in most international and indigenous oil and gas companies, excelling in their roles. The board attributed these achievements to its strategic enforcement of the Nigerian Oil and Gas Industry Content Development Act 2010, particularly the Expatriate Quota, Succession Plan, Deployment of Expatriates Guidelines, and Expatriate Temporary Work Permit Guidelines.
The NCDMB commended PENGASSAN for acting as a whistleblower on the alleged expatriate quota abuse by Sterling Oil’s management. It assured the union and the public of a thorough investigation and appropriate action.
The board confirmed that SEEPCO had been sanctioned several years ago for violating the NOGICD Act and stated that it had recently re-engaged the company over similar concerns.
“In 2017, the NCDMB identified five expatriates deployed by SEEPCO without obtaining the necessary approvals,” the board disclosed. “As a consequence, the company was penalized for its non-compliant expatriate deployment. To address this, SEEPCO trained five Nigerians in marine engineering and subsurface drilling engineering for nine months.”
“In 2018, NCDMB identified 402 expatriates deployed by SEEPCO without approval. Additionally, NCDMB discovered projects, contracts, and purchase orders from multiple projects that were awarded and executed without appropriate approvals. NCDMB penalised SEEPCO for these infractions and directed SEEPCO and its affiliates to take the following actions: Disengage the 402 expatriates and provide evidence of their disengagement and exit to the board. Commence and comply with the NCDMB Expatriate Quota application process; Comply with the board’s requirements for tendering and awarding projects, contracts, and purchase orders; Complete the Nigerian Content Development Fund reconciliation exercise and pay outstanding remittances. Submit up-to-date statutory reports on Nigerian content and comply with the review process. Train and employ 40 Nigerians as part of the remediation/penalty.
Regrettably, SEEPCO disregarded these directives until the board initiated legal action against the company, in accordance with Section 68 of the NOGICD Act.
In 2020, Sterling Oil sought an out-of-court settlement and pledged to address its compliance issues and implement the required remediation measures. By 2022, it had completed the training of 40 Nigerians; however, it failed to fulfill its employment commitment.
“Furthermore, SEEPCO made only partial remittances to the Nigerian Content Development Fund and has continued to ignore other Nigerian content requirements,” the NCDMB stated.
In 2023, SEEPCO secured Expatriate Quota approval for three positions. According to the board’s records, the company has been granted only seven expatriate positions between 2017 and 2023.
The board stated that it has requested statutory submissions from SEEPCO and scheduled a performance review session for March 2025.
Reaffirming its commitment to the effective implementation and enforcement of the NOGICD Act, the NCDMB emphasized its dedication to creating employment opportunities for Nigerians, strengthening local content, and driving economic growth.
“The board will not hesitate to sanction companies that blatantly violate the provisions of the NOGICD Act,” it warned. “We welcome collaboration with stakeholders, including oil unions, to achieve the objectives of the Act.”
SEEPCO previously described itself as a responsible corporate entity that operates in full compliance with federal laws.
“We strictly adhere to federal laws and industry regulations. Our unwavering commitment to employee welfare, host communities, and stakeholders allows us to uphold high standards in labour relations, environmental sustainability, and corporate governance,” the company stated.
Addressing PENGASSAN’s specific allegations, SEEPCO emphasized that Sterling Oil fully complies with the Collective Bargaining Agreement with PENGASSAN, the Industrial Act, and the laws of the Federal Republic of Nigeria in both letter and spirit.
SEEPCO stated that its commitment to compliance has positioned it as the fastest-growing indigenous company in Nigeria’s oil and gas industry. The company reaffirmed its dedication to driving economic growth, creating local jobs, and enhancing energy sector security by investing in local content development, incorporating sports into employee skills acquisition programs, and implementing community development initiatives to improve quality of life.
“We categorically refute any claims that misrepresent our commitment to fostering a fair and supportive working environment,” SEEPCO asserted. “Over the years, we have consistently engaged with relevant labour unions, including PENGASSAN, to maintain a harmonious and mutually beneficial relationship.”
