The Federal Government has mediated a resolution between Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), ending a prolonged dispute that had threatened industrial harmony within the oil and gas sector.
A reliable source in Abuja confirmed that both parties reached a mutually agreeable settlement on June 4, 2025, following extensive government-facilitated negotiations. The move is seen as a critical step toward maintaining peace within the industry and ensuring long-term productivity and growth.
According to the source within the ministry of labour and employment, the resolution came after several months of talks that began earlier this year. These meetings, which were conducted under the close oversight of key government institutions, aimed to address and resolve all contentious issues affecting the relationship between Sterling Oil and the union.
“This agreement highlights a shared commitment from both Sterling Oil and PENGASSAN to uphold industrial harmony, boost national output, and prioritize the welfare of workers in the oil and gas industry,” the official said.
The agreement is also aligned with federal laws and industry regulations, offering clear guidance for future interactions between the company and the union. It emphasizes the need for continuous dialogue, transparency, and compliance with regulatory frameworks.
An official of Sterling reaffirmed its commitment to operating within regulatory standards, advancing skill development for Nigerian workers, and maintaining open channels of communication with all stakeholders. The company also highlighted the importance of collaborative engagement as a foundation for long-term success.
“We commend the leadership of PENGASSAN and express deep gratitude to the Federal Government, especially the Ministry of Petroleum Resources, the Ministry of Labour and Employment, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and NNPC Limited, for their essential roles in helping us reach this agreement,” he added.
Industry analysts have praised the outcome as a major step toward restoring trust and ensuring smooth operations in the sector. With the oil and gas industry being a backbone of Nigeria’s economy, peaceful labor relations are seen as vital to maintaining production levels and attracting investment.
