The Federal Government, through the Nigerian Content Development and Monitoring Board, says it is taking action to address Sterling Oil Exploration and Energy Production Company’s alleged anti-labour practices.

The board also recalled how Sterling Oil had repeatedly violated its local content directives, saying it will not fail to sanction firms that flagrantly flout provisions of its laws.

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, over the company’s alleged anti-labour practices and expatriate abuses.

Osifo criticised the management of Sterling Oil for abusing the expatriate quota system, which he said led to discrimination against skilled Nigerian workers in the oil and gas sector.

He accused the company of discriminatory practices, monopolising jobs that Nigerians are qualified to perform with the Indian nationals

He said, “Our members in Sterling have been pushed to the background; they should tell us how many Nigerians are working in Sterling Oil today that are managers.

“They should tell us how many Nigerians today are working in Sterling Oil that are general managers. However, when you go to other international oil and gas companies, you have Nigerians even as managing directors, deputy managing directors, executive general managers, general managers, and so on,” Osifo said.

In a statement on Monday, the NCDMB commended the PENGASSAN leader for acknowledging that qualified Nigerian personnel are occupying top leadership and technical positions in most international and indigenous operating oil and gas companies and are performing creditably in those roles, saying the feats were accomplished through NCDMB’s strategic implementation and enforcement of the Nigerian Oil and Gas Industry Content Development Act 2010, particularly the Expatriate Quota, Succession Plan, Deployment of Expatriates Guidelines, and Expatriate Work Temporary Work Permit Guidelines.

The NCDMB expressed delight that PENGASSAN served as a whistleblower over the alleged expatriate quota abuse by the management of Sterling Oil, assuring the union and the general public that it would investigate the matter exhaustively and take necessary actions.

The board confirmed that it had “sanctioned SEEPCO a few years ago for gross violations of the NOGICD Act.”

It added that recently, it started engaging the company for the same reasons.

It disclosed, “In 2017, the NCDMB identified five expatriates deployed by SEEPCO without obtaining the relevant NCDMB approvals. As a result, NCDMB penalised the company for this non-compliant deployment of expatriates. To remediate 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 ignored those directives until the board commenced legal proceedings against the firm, in line with section 68 of the NOGICD Act.”

Sterling Oil was said to have sought an out-of-court settlement and committed to addressing the compliance issues and undertaking the remediation in 2020.

It reportedly completed the training of 40 Nigerians in 2022, but the employment commitment was not achieved.

“Additionally, SEEPCO made only partial NCDF remittances. SEEPCO has refused to respond and comply with other Nigerian content requirements.

“In 2023, SEEPCO obtained Expatriate Quota approval from the Board for three positions. From our records, SEEPCO has been granted only seven expatriate positions between 2017 and 2023,” the NCDMB disclosed.

The board said it has requested statutory submissions from SEEPCo and scheduled a performance review session for March 2025.

NCDMB reiterated its commitment to the effective implementation and enforcement of the NOGICD Act in the oil and gas sector to create employment opportunities for Nigerians, deepen Nigerian content, and boost the economy.

“The board will not fail to sanction firms that flagrantly flout provisions of the NOGICD Act. The board welcomes the collaboration of stakeholders, including oil unions, towards achieving the intendments of the NOGICD Act,” the NCDMB stressed.

Earlier, SEEPCO described itself as a responsible corporate citizen, adhering to federal laws.

“We adhere to federal laws and industry regulations. Our unwavering commitment to the welfare of employees, host communities, and stakeholders enables us to maintain high standards in labour relations, environmental sustainability, and corporate governance. Further, in the context of specific allegations by PENGASSAN, we would like to clarify that Sterling Oil abides by the Collective Bargaining Agreement between PENGASSAN, the Industrial Act, and the laws of the Federal Republic of Nigeria to its letter and spirit.

“This intent has enabled SEEPCO to become the fastest growing indigenous company in the oil and gas industry, and the company will continue its contribution to Nigeria’s economic growth, the creation of local jobs, and security in the energy sector by investing in local content development, promoting sports as an inclusive part of employee skills acquisition programmes, and community development initiatives aimed at improving the quality of life.

“We categorically refute any claims that misrepresent our dedication to fostering a fair and supportive working environment. Over the years, SEEPCO has consistently engaged with relevant labour unions, including PENGASSAN, to ensure a harmonious and mutually beneficial relationship,” SEEPCO said.